Are you looking at the right things when buying a condo? Most people look at location, view, amenities, square footage, and level of finish inside the condo unit. But why get excited over a condo and put in an offer if the building is not able to be financed by a mortgage lender? Below is a list of some of the most important things that a lender will be looking for when analyzing a condo to approve a loan for a mortgage borrower. Read the rest of this entry »
2-4 Unit Condos Are Easier To Get A Mortgage Loan For These DaysDecember 5th, 2021
In some urban markets a multifamily home is converted to condominiums. For example, a duplex is turned into two condominium units. Or a triplex is turned into three condominium units. Or a fourplex is turned into four condominium units.
The required condominium project review that needs to be done on most condominiums is waived on condos that don’t consist of more than four units. Read the rest of this entry »
Condominium Litigation When Getting A MortgageOctober 7th, 2021
If a condominium has litigation against it, to get a loan approved there are certain things a mortgage lender has to document or the loan may be denied.
A mortgage lender has to prove that the litigation has no impact on the safety and structural soundness of the condo.
And the insurance carrier that insures the condominium building has to have agreed to provide the defense, and the amount of the litigation must be covered by the HOA’s insurance.
There are other reasons why litigation against a condominium may not be an issue, such as:
- It is non-monetary litigation including, but not limited to neighbor disputes or rights of quiet enjoyment;
- the HOA is the plaintiff in the litigation and not the defendant;
- the reasonably anticipated or known damages and legal expenses are not expected to exceed 10% of the project’s funded reserves.Financing a condominium can be tricky for other reasons. Mortgage guidelines have the ability to change at any time, so always talk to a well-reviewed mortgage loan officer to make sure you understand the current guidelines and how they might apply to you.
Getting A Condo Loan Gets HarderSeptember 23rd, 2009
Getting a condo loan gets harder? Getting a mortgage to buy a condominium is getting more complicated. The best advice I can give you is to make sure you talk to an experienced mortgage professional BEFORE YOU WRITE A SALES CONTRACT. This applies not only to the market I cover most in Washington DC, Maryland and Virginia, but nationwide.
Checking with a lender beforehand ensures that the condo is able to be loaned on. You would be surprised how many condos cannot get financing, especially with Conventional mortgage insurance.
How to Reach Out to a Mortgage Lender: Finding the Right Advocate in Your Home Buying ProcessDecember 9th, 2021
If you are buying a home, you will need a mortgage lender to help you fund it. There are many mortgage lenders available, so finding the right one can be difficult sometimes. Here, we will look at how to reach out to mortgage lenders so that you can find the best lender available to help you finance your dream home.
Latest Condo RulesSeptember 15th, 2016
**Condo underwriting guidelines can change at any time** Getting a condo loan has gotten a bit easier with some recent changes that Fannie Mae just made. The best thing you can do is make sure you know which loan rules to look at when buying a condo, and more importantly if you are selling one. If you know all the exact details of your condo and how it is run, then you will know if your buyers are eligible for Fannie Mae/Freddie Mac financing. If not, then you need to let prospective buyers know that they can look for something like a “portfolio loan” that may have more liberal rules than Fannie and Freddie. If your condo has major issues going on that will require a seller to find a cash buyer. Read the rest of this entry »
Limited Review Condo ApprovalJuly 6th, 2021
A limited review condo approval means that when you get a mortgage to purchase a condominium you don’t have to go through the normal extensive document review to approve the condominium. You must have an approved condo to get a mortgage approved to buy a unit in the building. The approval review is more limited/abbreviated with a limited review condo approval. Read the rest of this entry »
New Condo Mortgage Guidelines After The Florida Condo DisasterFebruary 24th, 2022
There have been several announcements regarding condominium deferred maintenance recently. As a mortgage lender, we must pay attention to announcements regarding changes in underwriting guidelines from both governmental mortgage agencies that write off all of mortgage guidelines, Fannie Mae and Freddie Mac. We also have to pay attention to guideline changes announced by the various banks that we sell loans to.
Ever since the horrific disaster in Surfside Florida on June 24th 2021 (when the building collapsed due to deferred maintenance), the government agencies and the banks we sell mortgages to have started to incorporate questions related to condominium maintenance into the condo questionnaire. Read the rest of this entry »
Waiving Contract Contingencies On A CondoNovember 25th, 2022
When buying a condo, you may find yourself in a competitive bidding situation and your realtor may ask you about waiving some or all the contingencies in your contract. These contingencies are usually things like a home inspection contingency, appraisal contingency, and financing contingency. But waiving contract contingencies on a condo can be risky. Read the rest of this entry »
What Can Stop You from Buying a House? Common Obstacles and How to Overcome ThemDecember 15th, 2021
You have a down payment saved up, a good credit score, and a low debt to income ratio; it is time to buy your dream home. However, something prevents you from buying the home. What can stop you from buying a house? In this article, we will explore some common obstacles and how you can overcome them.