CONDO MORTGAGE LENDERS
CONDO MORTGAGE PROGRAMS INCLUDE THE FOLLOWING:
- 100 % VA Condo Mortgage Loans Down to a 550 fico!
- 96.5% LTV on FHA Approved Owner Occupied Condos= 3.5% Down payment!
- 95% LTV on Owner Occupied Condos= 5% Down payment!
- 90% LTV on Second Home Condos= 10% Down payment!
- 80% LTV on Second Home Condos= 20% Down payment
- 80% LTV on Investment Condos= 20% Down payment.
- 75-80% LTV on Non Warrantable Condos + Condotels.
Non-warrantable Condo Approvals!!
- Up to 80% LTV
- At least 30% of complex owner occupied
- Condo litigation considered
- Structural issues must be resolved and litigation is to recoup funds
- Commercial influence exceeding FNMA limits considered
In comes the VA mortgage to the rescue for Condo Buyers and current Condo homeowners. To qualify for a VA Mortgage the condo must be on the VA Approved Condo list, which includes many existing complexes. You can search for VA Approved Condos yourself, or let us assist you,we are here to help.
15, 20 and 30 year fixed rate terms available!
What is a Non Warrantable Condo? A Non Warrantable condo means the condo complex in question does not meet the minimum risk exposure standards of of FHA, VA, or Fannie Mae.
Components of A Warrantable Condo include:
- Most of the Condo units are owner occupied or second homes.
• No More than 15% or less of the condo units are more than 30 days delinquent on HOA dues.
• No more than 10% of a Condo project can be owned by a single person or entity.
• No more than 20% of the Condo project can consist of non-residential space.
• On established and existing Condo projects, at least 90% of the condo must be sold.
• For new and currently converted construction, 70% of the units must be pre-sold
• HOA’s must have at least 10% of its budgeted income designated for reserves
• Adequate insurance coverage for liability, fidelity, and a master policy for building
• HOA budget review
How do you know if your condo purchase is warrantable?
Step 1 try these 3 warrantable condo links!
- Check FHA approved Condo list- Click Here.
- Check VA approved Condo list- Click Here.
- Check Fannie Mae Approved Condos-Click Here.
Step 2- Get a Condo Questionnaire Filled out. Or Ask the association if the condo complex in question is warrantable.
condo mortgage applicants will find that a mortgage on a Condo is more complex than purchasing a single family or town-home or villa. There are additional requirements for condo associations that do not exist in other typical mortgage transactions. The Condo must be approved by the mortgage lender via condo association questionnaire before you can get financing on a condo.
MANY MORTGAGE LENDERS WILL NOT MORTGAGE CONDOMINIUMS
Having trouble getting a condo mortgage because the condo you are interested in is being denied by your mortgage lender? mortgage lenders.com offers condominium mortgage loans on many condos projects that are not Fannie Mae approved and which other mortgage lenders consider not financeable. Conditions include the mortgage applicant must:
1. The condo purchase must be a primary residence = 25% down payment for a purchase or 25% equity for a refinance.
- 2nd condo home loan transactions require a minimum 30% down payment for purchase and 30% equity in the condo for a refinance.
Our expanded mortgage approvals for condos require no condo questionnaire, no review of the association budget and no approval of the project reserves. It may seem counter-intuitive, but no matter how strong you may be as a mortgage applicant, or what the down-payment/Loan-to-Value is; most mortgage lenders will not mortgage condos if they fail even basic criteria of a condo questionnaire. Details of most denials include: pending litigation in the project, low % of owner-occupancy, high % of current condo owners late on their HOA fees are just a few reasons that will kill your condo mortgage. It is very risky to attempt to secure financing with mortgage lenders that require Condominium questionnaire approval. A result of the housing market crash is that most condo projects have some of the aforementioned issues. The safe and easy path to a smooth mortgage process is to work through one of the very limited number of mortgage lenders that do not require condo questionnaire approval.
Mortgage Lenders.com is one of only a very small number of limited Lenders with Access to the mortgage lenders that do not require a condo questionnaire that offer these programs.
QUESTIONS TO ASK THE CONDO ASSOCIATION:
- Is the condo project Fannie Mae or FHA Approved? If the answer is yes, then you may proceed as long as the Condo is not on the lender’s unbendable list (Yes, this is still possible even if a condo project is Fannie Mae approved). It is important to note that some phases within a condo project may be approved while others may not. This is a common mistake that can blow up many deals.
- Am I eligible for a condo Project Review Waiver? (Also called a Limited Review) Primary condo purchases with a 25% down payment/equity. Second condo home transactions with a 30% down payment/equity. Investment Properties are not eligible. Beware of lenders offering “Limited Review” of a condo but requiring a Condo Questionnaire. If a condo questionnaire is required, then it is not a limited review and you risk your loan being denied for factors not related to your individual credit worthiness. Check that your Condo is not on the lender’s list of denied projects. The Government Homeowner Assistance Program = HARP will allow you to refinance up to 125% of your home’s value if your Loan is owned by Fannie Mae or Freddie Mac. There is no project approval for these programs.
- Can I get an FHA mortgagein a Condo that is not FHA Approved? No. Currently FHA and lenders are not allowing spot reviews of condos for FHA Loans. You should check which Condos in the area you are interested in buying are already FHA approved if you are interested in a low down payment FHA loan.
- What is the minimum down-payment for a Condo Loan? For purchases, typically the minimum down payment is 20%. We encourage that you put more money down so that we can waive the project approval requirements. 25%- Owner Occupied. 30%- Second Home. If the project is FHA approved, you can purchase a primary residence with a 3.5% down-payment. For Refis, if the loan is eligible for HARP- Government Homeowner Assistance Programs- Then it is possible to get a condo home loan for up to 125% of the home’s value.
CONDOMINUM MORTGAGE REQUIRMENTS
Mortgage lenders have requirements for condo financing.
Mortgaging a condominium comes with a few more requirements than a standard mortgage. Condominiums are mostly part of a condo association and the reputation of that association can affect a mortgage applicants chances of obtaining condo financing. Due to the number of association delinquencies many mortgage lenders have raised their requirements for financing when purchasing condominiums. Large down payments usually between 20-30%, association questionnaire approvals and inspections approved directly by the mortgage lender are some of the requirements that condo buyers must meet before they obtain a loan for a condominium.
CONDO ASSOCIATION FEES
Living in a condominium complex usually requires the unit owners to pay association fees. Most mortgage companies can now refuse financing if 15 percent or more of the residents are 30 days or more behind on their association dues. Delinquency rates in dues worries mortgage lenders because it casts doubt on the association’s cash reserves and financial status.
New condominium units and complexes have a minimum criterion of sold units to meet. Most Mortgage Lenders now want to see at least 49 percent of the units sold or under contract before they will agree to financing.
o Condominium inspections usually take place before the mortgage applicant apply for condo financing.. However, all Fannie Mae-backed mortgages for condos will have to undergo an inspection by a Fannie Mae representative. This includes the complex as well as an investigation into the association’s financial situation. Previously, condominium inspections were carried out but by the individual mortgage lender.
CONDOS LOANS REQUIRE LARGER DOWNPAYMENT
Mortgage insurance (MI) companies are currently not providing private mortgage insurance in due to the large number of defaults. As a result condo mortgage applicants are required to put down a minimum 20 percent down payment.
-Mortgage-Lenders.com offers FHA, VA, Conventional, USDA, Condo, Non Warrantable Condo, Investment & Condotel (Condo Hotel) Financing for every city and county in including.