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

I highly recommend Chad Baker. He does a phenomenal job and won’t trauma you or your clients. He has a whole team that works on the loans. And all the team members are great. He has a person that can translate for your clients that are Chinese. He is as good of a loan officer as you are an agent, and that is what you want when referring clients to a lender.

“We signed all our papers yesterday afternoon. I wanted to thank each one of you for all your hard work and tenacity in making this happen for Michelle and I. This is by far the easiest closing we have been through. All thanks to you all. You all the best at what you do. No other group works like this together. Again, thank you all, from Michelle and I, we will be forever grateful. Absolutely the best team I have ever dealt with. From beginning to end, the customer service provided was beyond reproach. Everyone gave us their personal attention and that made it so easy.”

Excellent customer service – highly recommended!. I was referred to Chad by one of my friend. During our initial meeting, Chad walked me through the lending process and provided multiple ideas to start the home search. He got me pre-approved in couple of days. After looking for months, we finally liked a house but it was over our budget. He came up with an intelligent financing strategy and provided an excellent rate that let us purchase our new house. Chad and his team are patient, professional and always available – literally 7 days a week, 24×7. I can’t remember the last company I worked with that returned calls and emails in such a timely manner! I will happily recommend him to others.”

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