Condominiums have become a larger segment of the market. Some buyers find condominiums a more affordable option. Some buyers choose a condominium as a lifestyle choice. The amenities available are attractive, and the maintenance of a condominium is often much easier than a single-family home. The hidden challenge is finding a mortgage for a condominium is not easy. A mortgage for a condominium is broken into two parts. Part 1: You may qualify for a mortgage for the sales price. Your credit, income and assets all qualify for the mortgage amount you need. Did you meet those criteria? Yes, then great! Now, Part 2: Even when you qualify for the mortgage, the Condominium Project requires approval. Did you know that, Fannie Mae, Freddie Mac, FHA, and VA all have different rules for Condominium Project Approval? What is the CPM? What is the mandatory Condominium Questionnaire? Did you know the Condominium Budget needs to be approved? There are other factors that are reviewed: Investor concentration. What percentage of units are owned by investors? Single entity ownership. Does one single entity own more than 10% of the total units? How many owners are delinquent paying their Condominium Fees? The structural integrity of the Condominium Project is reviewed via a mandatory Structural Addendum that the Homeowner’s Association completes. Even when you qualify for a mortgage for a Condominium the mortgage may not be approved. The Condominium Project approval is completely separate. This is where the experience of your mortgage team matters. The FDM team of Mortgage Professionals are experts in Condominium financing. If you are ready to make an offer on a Condominium, please contact your FDM Mortgage Professional before you make an offer. Let the FDM team help you determine if the Condominium Project can be approved.
