What is a Condo?
A condominium (condo) is a unit owned by an individual within a building or community with multiple units and shared common areas like garages, rec rooms, gyms, outdoor space, etc. These common areas are maintained by the condominium association and are paid for by the residents through dues sometimes referred to as common charges.
What is the Mortgage Process for a Condo?
When applying for a mortgage for a condo, the lender has to approve the borrower and the building. Some things lenders look for in a condo building are:
- High owner occupancy rates
- No current litigation. Certain lenders will want a history of previous litigation and the outcome.
- Current building budget
- Strong financials
- Adequate and appropriate building insurance
The lender has to contact the managing agent of the building in order to access the necessary information. The borrower and realtor can get the managing agent’s information from the seller’s agent or by contacting the building directly. Managing agents typically charge a fee for providing the information needed and that range from $50 to $300.
While we are approving the building, we will also be approving you. This part of the process is the same regardless of whether a condo is involved or not.
Certain condominium buildings are approved by the U.S. Department of Housing and Urban Development (HUD) for FHA loans. These buildings can be found on HUD’s web site here https://entp.hud.gov/idapp/html/condlook.cfm.
As an Eagle FHA lender, GuardHill is approved to lend in all FHA approved condos.
What is a Non-Warrantable Condo?
Non-warrantable condos are buildings that do not fit into Fannie Mae and Freddie Mac’s guidelines. Non-warrantable condos fall outside of lending guidelines and can be more difficult to finance through a traditional lender who stays away from mortgages outside of Fannie Mae’s guidelines.
At GuardHill, we lend in non-warrantable condos offering you the flexibility when looking for a new home or investment.
What makes a condo non-warrantable?
- A low owner occupancy rate
- High investor concentration
- A high commercial-to-residential ratio
- Pending lawsuits
Why Work with GuardHill?
Non-warrantable condos are easy to finance through GuardHill’s network of over 50 different lenders. This network allows our team to compare building approvals and rates to find the most favorable mortgage terms for your condo unit.
Headquartered in New York City, GuardHill has extensive experience in financing purchases and refinances in condo buildings all over the Tri-State area. Due to our high lending volume, we have built trust with many contacts in the condo industry. This allows us to acquire faster approval times for our clients. When you apply for a condo loan, GuardHill will need updated budgets, financials, and questionnaires from the condo for every transaction. This helps document any updates or changes from previous documentation on prior loans.
Working with GuardHill on your condo mortgage gives you access to a network of lenders with expansive lending capabilities for condo buildings. Our team is able to match your lending needs and desired condo building with the most favorable mortgage terms, all with one application.