Condo financing guide

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Condo financing guide

  1. 1. [Type text] Condominium Financing Quick Review We are excited to offer financing on condominium projects that meet these relaxed standards: Established Buildings (90% sold and closed, entire project is 100% complete): • Maximum financing 90% owner occupied; 75% second home – all conforming loan amounts ($417,000) • No condominium questionnaire required • No maximum investment concentration • No review of percentage of unit owners delinquent on assessments • No Pending litigation – is allowed if underwriter can determine it has no negative effect on the marketability or health and safety of the building • Commercial space is allowed up to 20% of the building • No more than 10% units can be owned by single entity (this does not include bank owned properties) And more traditional project standards: New Construction/Conversion/up to 97% LTV/Jumbo/Investment: • Required full project review and approval • Fully executed questionnaire, Decs/Bylaws/Budget and Balance Sheet • Typically 70% of the units must be sold or under contract and no more than 49% can be investment use • No Pending litigation – is allowed if it can determined it has no negative effect on the marketability or health and safety of the building by investor exception • No more than 10% units can be owned by single entity (this does not include bank owned properties) • Reserves must be 10% of the annual operating budget • All common elements must be complete • Right of First Refusal can be an issue and must review language for • No more than 15% of total number of units are 30 days or more delinquent on their HOA • Right of first refusal can be an issue, must review language in the decs. With questions or scenarios contact: John Poast 312.543.0688 john.poast@keymortgageservices.com

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