Condo Purchases without a HOA Certification

Condominium loans are unlike loans for single family residences. The biggest difference is that not only are the qualifications (income calculations, credit history, and down-payment capabilities) of the borrower taken into consideration, but so are the qualifications of the condominium project itself. A mortgage bank is going to take into consideration the overall health of the condominium in the process of approving the loan for any buyer. The health of the condo project is determined by a Homeowner’s Association Certification that is ordered once an offer is accepted at the cost to the buyer. The following areas will be immediate areas of concerns:

  • Owner-Occupancy of the entire project under 51%
  • HOA delinquency over 15% in the past 30 days
  • The involvement of the HOA in any type of litigation

As long as you are planning on putting down a minimum of 10% for an owner-occupied or second home purchase or refinance of a condominium, we will not require the review of a HOA certification. This means:

  • You will not be charged the expense of the condo certification (approximately $100-$200)
  • Condos with less than 51% owner-occupancy are eligible
  • Condos that have more than 15% HOA delinquency are eligible
  • Condos that are involved in some litigation as long as it is not construction defect litigation are eligible

Testimonials

“We’re loving our new place and we’re very pleased with how smoothly everything went through closing. Thanks for keeping us up to date on the possibility of refinancing at a lower rate; we trust your judgement as far as waiting until the rate is around 5% lower before we refinance. We’re very interested in pursuing that if rates drop to that level. Thanks so much for all your help and personal attention!”

“Chad, it was a pleasure working with you. Your loan was smooth, speedy, and we were kept well informed. I will make sure to prioritize offers where you are the loan officer as I know they run smoothly.”

An ‘A’ Team!
We just closed on our second transaction with the Chad Baker team. They are very well organized and I can attest that they are looking out for their clients’ best needs. A special shout-out for Juliann B. who was our guide through the painful loan process. We found Juliann to be very responsive, kind, patient, and diligent in getting both our refis closed well.”

I hope you enjoyed reading this article. It's my goal to keep you updated with the latest real estate mortgage news. I'm proud to provide you with 100% original and unique content. Subscribe now to get high quality real estate mortgage content and articles delivered directly to your inbox. Chad Baker is Regional Manager for Cross Country Mortgage. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2019. Got a question for Chad? Call (858) 353-8331 or submit your question online