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

“Thank you for all the hard work (even on weekends!) you and your team have devoted to seeing this through in a very efficient manner. It’s been an easy process for me and, you and your team have been a delight to work with.”

As a first time home buyer, I wasn’t sure what to really expect, but Chad and his team made the process very clear and easy. Once the process was over, they didn’t just vanish either. They kept in touch and looked for opportunities that may benefit me. A couple years later, they found me a great refinance opportunity that saved me a lot of money! Once again, the process is long and grueling, but Chad and his team made it as painless as could be. Any barrier that I encountered, they found a quick solution to make it happen. Mortgages are a huge commitment and I wouldn’t pick any other team to help me make the right decisions.”

Excellent service!
My wife and I purchased a home in Escondido, first home together. Chad and his team made the whole process extremely easy and helped us close quickly. Will recommend to all friends and family!”

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 LendUS. Chad is consistently recognized in the top 1% of mortgage originators in the United States 2011-2017. Got a question for Chad? Call (858) 353-8331 or submit your question online