The concern of if a property is “warrantable” usually comes up in the context of condos. While the rules are always shifting, the real reason lenders want a condo to be warrantable is that it means they could sell the loan into the secondary market. Now, just because a condo is or is not warrantable does not mean that the loan will be sold or that your rates will be different. It all depends on the lender.
As always, this is one of the myriad of reasons why it’s important to use a good, reputable, local lender who knows the area and will consider the unique circumstances of your situation. Visit our Mortgage Pros page for a few recommendations.