Category: Condominiums

TWO APPROVALS, PLUS COLLATERAL

Two approvals take place when you apply for a loan.  Lenders review both your credit and income, and the collateral. The collateral must be sufficient for the loan to be approved.  What if the collateral is a condominium? When the collateral is a condominium, there is increased scrutiny by the lender. This is due to the fact that a condo typically has shared walls, ceilings, or floors, and there is more risk to the lender because the loan is somewhat dependent on the status of the units surrounding the condo. Thus, lenders will ask questions of the Homeowners Association (“HOA”)...

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LENDING ON CONDOMINIUMS

Did you know when you apply for a loan there are actually 2 approvals that take place? The lender reviews the file based on your credit and income, and also reviews the collateral. The collateral must be sufficient in order for a loan to be approved. When the collateral is a condominium, there is increased scrutiny by the lender. This is due to the fact that a condo typically has shared walls, ceilings, or floors, and there is more risk to the lender because the loan is somewhat dependent on the status of the units surrounding the condo. Thus, lenders...

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IT LOOKS LIKE A CONDO

It looks like a condo, is it a condo? One cannot determine whether or not a structure is a condo by looking at it when it comes to HOA’s. There are many properties that you may know as a patio home, townhome, or even a single-family residence, but because of the way the land was developed, lenders will consider them as condominiums and they must meet specific rules. What defines a condominium? Here is how you can tell if your property is a condo: If the legal description contains the words “condominium” or “horizontal regime,” the lender will consider the...

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FINANCING AND PLANNED COMMUNITIES

When you finance a condo, there are specific rules the condominium association must meet. Here is the link to the article we wrote on these rules: /category/condominiums/ However, there are many properties that you may know as a patio home, townhome, or even a single family residence, but because of the way the land was developed, lenders will consider them as condominiums and they must meet the above rules. Here is how you can tell if your property is a condo: If the legal description contains the words “condominium” or “horizontal regime,” the lender will consider the property a condo,...

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HOMEOWNERS ASSOCIATIONS AND LENDING

Did you know when you apply for a loan there are actually 2 approvals that take place? The lender reviews the file based on your credit and income, and also reviews the collateral. The collateral must be sufficient in order for a loan to be approved. When the collateral is a condominium, there is increased scrutiny by the lender. This is due to the fact that a condo typically has shared walls, ceilings, or floors, and there is more risk to the lender because the loan is somewhat dependent on the status of the units surrounding the condo. Thus, lenders...

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