Condo Financing

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Condominiums are placed under greater scrutiny by investors due to the nature of the property. In order to finance a condominium, there are certain prerequisites that need to be met and documented on a condominium certificate. There are 3 factors which will immediately disqualify a property from refinance. First there can be no litigation against the condominium; if there is then the lender can not proceed with the loan. Second, the property needs to have at least ratio of 49%:51% non owner occupied units to owner occupied units. If there are more non owner occupied units then the property is disqualified by the investor. An owner occupied unit is defined as a unit which is the primary residence of the owner. A non owner occupied property is defined as a unit which is not the primary residence of the owner. Third, a condominium must not have a HOA delinquency or unpaid balances of rate of more than 15%. These three conditions need to be satisfied for all condominiums. There are other requirements which do not apply to all properties. The most common two are as follows: A condominium project may not be more than 20% commercial space and a condominium may not be a condo-tel. There are more restrictions for the Condo Financing, this is just very basic. Please call our loan officers when you prepare to acquire a Condo Financing.

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