I got a call yesterday from a realtor (referred to me by Margaret Rome, THANKS MARGARET) who has a client interested in condo living. There are some fabulous condos on the market, the prices are right, the amenities are fabulous. For cash buyers, condo living may be a no brainer, but for many the question will be "Will financing be available?"
To determine if the condo is currently approved for FHA financing, click here.
To determine if the condo is currently approved for VA financing, click here. It can take 8-12 weeks for the VA legal department to approve a condo. Documents including budget and condo docs will be required for review.
The condo association may already be approved for conventional financing by specific investors, your loan officer should be able to determine. If not, the investor will need at least the following information from any condo association you are considering (if they are not already approved):
- 2011 budget
- Condo Master Insurance Policy
- Signed and Dated Condo Questionnaire
There may or may not be a fee required by the condo associated for gathering the documentation.
Most lenders will probably not approve financing if:
- it is less than 51% owner occupied
- the association is involved in any litigation
- there is over a 15% delinquency rate on dues
- the condo is over 20% commercial
- one entity owns 10% of the condos
Don't be discouraged if a condo listed for sale is not yet approved for available financing, with some skill, diligence and proper documentation, we can help you to navigate the approval process for condos in Maryland so when someone asks "Will financing be available?" You can answer "YES" with confidence!
UPDATE: Local lenders may have portfolio (in house) financing programs that National lenders do not. The guidelines are determined by their management team, and not subject to Fannie Mae, Freddie Mac or governmental rules. I have spoken to a local lender who has an Adjustable Rate Mortgage (ARM) program that may be a good option for some condominium buyers. We will continue to research financing options to ensure the best fit for the client. If we don't offer a program that works for a buyer or their home of choice, someone else does (as long as we are aware of the option) we will happily refer the buyer to that lender.
If you are considering purchasing a home in Maryland and want to be sure you are mortgage ready, my brother Tony and I will be happy to help! We help to make the mortgage process a pleasure!
If you already own your home, we are happy to provide a no-cost mortgage review to help you to determine if refinancing may be in your best interest. Please contact me at 410-960-2061.