The Truth About Condo Loans
•
1 like•31 views
A deck covering the major key points in condominium financing.
Recommended
More Related Content
Similar to The Truth About Condo Loans
Similar to The Truth About Condo Loans (17)
Recently uploaded
Recently uploaded (20)
The Truth About Condo Loans
- 2. FHASingle-UnitCondoApprovals 100% The condo must be complete and not currently FHA approved _______________________________________ 5-Units The minimum required number of units in the condo _______________________________________ 2-Units The maximum units that can be FHA in a 10 or LESS unit condo _______________________________________ 10% The maximum units that can be FHA in a 10 or MORE unit condo 93% 7% 150K Condos Nationwide Not Approved FHA approved HUD Estimates 20,000-60,000 units can become eligible for finance PER YEAR after 10.15.19 New Rule Implemented 10.15.2019
- 3. TheCondoQuestionnaire Condo Questionnaire Mandatory and to be completed by HOA _______________________________________ Limited vs Full Review Limited is preferred; down payment decides form used _______________________________________ Florida 25% down payment for limited review _______________________________________ Outside of Florida 10% down payment for limited review
- 4. UnacceptableCondoFeatures Timeshare or shared ownership Membership fees for amenities not owned by HOA Managed and operated as hotel/motel Owned or operated as continuing care facility Restaurant, spa or health club owned and operated by HOA Pending litigation HOA or Developer Person, group or corporation owns large portion of total units 35%+ total space used for non- residential purposes
- 5. CondoBudgetRequirement 10% Minimum amount condo is required to include as reserves in annual budget ____________________________________ Call HOA to confirm prior to contract. This is a hard stop. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Bad Budget Good Budget Condo Budget Comparison Reserves Admin Expense Operating Expense Maintenance/Repair
- 6. CondoInsuranceRequirement Master Insurance Policy Push lender to review this as early as possible for minimum requirements _____________________________________ Master Flood Also a requirement and condo is not likely to purchase new policy for sale of one unit _____________________________________ FEMA Website shows all flood zone; don’t wait for the appraisal to check
- 7. FloridaPiggybackLoans Florida Condos Require 25% down payment for limited review ___________________________________ Piggyback Loan You can make a 10% down payment and use a 2nd loan to finance the other 15% ___________________________________ 680 Minimum credit score I recommend when applying this way
- 8. CondoConclusion Speak to the HOA ____________________________________________ Do your research! ____________________________________________ Avoid headaches! Hope you learned something new!