Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant

Is The Condominium Warrantable? What Does this Mean?

1 Comment

condo
If you have a client looking to purchase and obtain financing on an attached condominium, there are a few things to expect through out the loan process. The condominium needs to meet Fannie Mae and/or Freddie Mac guidelines in order to use conventional financing. The lender will send a condo questionnaire to the property manager or the condo association requesting information about the number of units in the project, owner occupants vs. investors, as well as insurance & budget information. This is done simply as a “background check” on the condominium itself in order to ensure the stability of the project.

From a mortgage banker’s point of view, we can see an inability to register who is actually living in the condo and in turn this can make some properties be viewed as high risk. When there are more investors than owner occupants the project tends to not be as well maintained. Fannie & Freddie want to see projects that have over 50% owner occupants.

Condominiums took a big hit to values and became very affordable to investors looking to purchase inexpensive rental properties. The condos also were attractive to 2nd home purchasers. Many bought multiple units in a subdivision, one unit to use personally for vacationing and another as a rental unit.

Depending on how thoroughly the property management company filled out the questionnaire, tells us how much other documentation is needed. It is helpful to have the Listing Realtor provide management company information at the beginning of the loan process. For any questions or comments please email me at Ingrid.Quinn@cobaltmortgage.com or visit me at http://www.ScottsdaleMortgageExpert.com.

Author: ibquinn

I am a Senior Loan Officer at Caliber Home Loans, with over 32 years of Mortgage Banking experience. I have the expertise and knowledge to help focus in on your homeownership goals and make them into reality. My team of experienced mortgage professionals and I can assist you in all steps of the home buying process and ensure that you have a smooth and hassle-free transaction. Caliber cannot accept mortgage loan applications or inquiries for properties located in New York through this site. Ingrid Quinn NMLS #211652 BK#0923637 www.ScottdaleMortgageExpert.com

One thought on “Is The Condominium Warrantable? What Does this Mean?

  1. Thank you for sharing your thoughts. I really appreciate your efforts and I will be waiting for
    your next write ups thank you once again.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s