Condos are an affordable, comfortable, and often luxurious property purchase. However, situations with the property status can make borrowing difficult.
Fortunately, our minimum-down-payment loans make condo purchases easier, faster, and more affordable. Here are eight characteristics that make our condo purchases stand out from other options.
Top 8 Project Characteristics that Make Our Minimum-Down-Payment Program Great for Condo Purchases
1. Lenient Commercial or Non-Residential Percentages
With other programs, you will often find that the condo unit is subject to restrictions regarding commercial use of the property. Many lenders require that the property be 100% residential, so if there is any commercial use, the entire facility is off limits are far as mortgages are concerned. In other situations, the commercial percentage must be less than 50%, and if commercial uses do exist, the use must be typical for the area and not impact the marketability of the property. These requirements can make it extremely difficult to obtain a mortgage on the property.
With our program, these restrictions do not apply. So if there is any commercial use, it will have little to no impact on your ability to take out a mortgage against the property while still using a small down payment for the purchase.
Some programs will also have restrictions on the zoning that is allowed. In this case, legal conforming and legal non-conforming properties may be allowed, but they are only allowed with a limited or full project review.
When you use our minimum-down-payment loan, you can make a purchase without having to deal with a limited or full review, which can take time and create a new hassle for your purchase. Many borrowers prefer to avoid reviews, making this an ideal option for your condo-purchasing needs.
3. Complications with Mandatory Membership Fees
With many facilities, there are mandatory membership fees. These are different from HOA fees, in that they are basically payments for required membership in a club or organization. The most typical type is country club membership fees if you live near a golf course. If you are required to pay membership fees, it can create issues with your lending process, as you will need to complete a full or limited review, once again creating roadblocks in your purchase.
With our program, fortunately, there will be no review requirements if there are mandatory membership fees. We can process your loan swiftly, without having to deal with either a full or even a limited review, which are shorter but still hold up the process.
4. Square Footage Requirements
You will also find requirements for the square footage of the property. Many programs require that your condo have at least 475 square feet of space or it won’t be eligible for a loan. If you only want a small condo, you may have trouble finding a lender who can help.
With our minimum-down-payment loan program, there are no requirements for the size of the property. If you are purchasing a condo under 475 square feet, we can still help you get the financing you need, which can’t be said by many other programs.
5. Fractured Projects
These are new projects where the renter or developer is renting out 10% or more of the space. It is also a location where the original developer went bankrupt and a subsequent developer had to come in and finish the project and is now renting or selling the remaining units. There are many complications related to these properties, with liens, ownership rights, and pending litigation all impacting the status of the property. For this reason, many lenders choose to avoid these properties, and if you can get financing, it will be subject to a limited or full review.
With our program, you can get the lending you need for a fractured project regardless of status or the nature of ownership and development.
6. HOA Liens
When a homeowner’s association is caught up in legal or debt situations, there can be a lien against the property, and if that lien takes first priority, it can make borrowing money on the property extremely difficult. Some lenders will allow HOA-lien property with up to 12 month of HOA dues within the lien priority state, and it must be documented through HOA information.
However, you can prevent these situations from harming your ability to borrow money for the condo by working with our minimum-down-payment program, which has fewer restrictions on HOA liens priorities.
7. Single-Entity Ownership Restrictions
Lenders generally prefer that single-entity ownership remains low. Basically, single-entity ownership is a situation when an individual or company owns a certain percentage of a condo facility’s units. For example, if there are 30 units in a condo building and Jane Doe Condo Holdings owns 15, the facility has 50% single-owner entity.
With other programs, if single-ownership is less than 50%, lending is allowed but a review is needed. If the building has between 50 and 75% single-entity ownership, it is only allowed under certain requirements, such as project type and budgetary reserves.
With our program, however, you can get the financing you need without the concern for single-entity ownership.
8. Litigation Involving the Property
When an HOA is involved in a lawsuit, either as the plaintiff or the defendant, it can create complications for borrowing on the property, as the cost of living could be impacted by legal fees. This is especially true for situations where the HOA is the defendant, and if the litigation involved structural issues for the property, lending may not be allowed at all.
Working with our team, you can get financing for a condo even when the HOA is involved in pending litigation.
Get the Right Financing for Your Condo Purchase
To learn more about our minimum-down-payment program, and how it can help you purchase a condo faster and will less money down, contact our staff today.
Everything about our transaction with this lender was perfectly explained to us, easy to do, and they were able to help us get our loan closed ahead of schedule. It was a perfect 10 and we couldn’t have been happier with the whole thing
“Chad and his team were fantastic. They were incredibly responsive to us and our needs. Chad laid out several refinance options for us, and was very supportive when we decided on the option we felt was best for our family. Chad and his team worked our deal and got our mortgage funded incredibly fast, with excellent service and even took the time to thank us personally once we funded. I can’t recommend Chad enough!”
Chad Baker and his team are amazing!
My husband and I found Chad through an article he had written. Every aspect of working with Chad and his team was exceptional. From our initial phone call where he explained the many options we had, to advice he gave in dealing with somewhat challenging sellers, and closing our loan ahead of schedule, the loan process with Chad and his team went very smoothly. I especially appreciated the one-on one guidance from Juliann, who really made me feel like I was her only client. I look forward to working with Chad and his team again and would highly recommend them to anyone looking for a mortgage.