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

Outstanding experience

I was referred to Chad by my Realtor for a purchase of a new house. The experience with Chad and the team (I mainly worked with Juliann) was nothing short of outstanding. From start to finish there were always quick to respond and when needed, notify me of any new documentation that was required. There were very helpful explaining to me the pros and cons of different financing options as well as some other loan related issues, such as termite clearance outside the purchase contact and septic tank certification process. Overall, very knowledgeable and processional team. Loan preapproval was done in a single day and loan documents were ready for signing in 21 days, which was 9 days ahead of schedule. That never happened to me before.

Chad and his team were Awesome to work with! I was referred to Chad by a good friend of mine. I was very impressed with the professionalism and quick response times from Chad Baker & his team during the entire process. I screened over 3 lenders before selecting the Chad Baker Team and I’m confident I made the right choice. It’s obvious that customer service is their #1 priority and it shows. I highly recommend Chad if you have lending needs. ”

“Chad and his team are exactly who you want handling the financing of your home. Whether it be a new purchase or refinance, he and his team are one of the most professional, responsive group of people I’ve worked with. Buying a home can be very stressful and Chad and his team took all of the necessary steps to make the process as painless and as quick as possible. They are extremely knowledgeable, organized and have great follow through. You won’t ever be left wondering what the next steps are. I highly recommend him and will use him in all of our real estate transactions moving forward.”

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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