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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
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