In today’s market, most condos do not qualify for regular Conventional or Government financing. To find out if the condo you want to buy qualifies for FHA, visit the HUD website. Enter the State and County, and under Status select Approved. Chances are there will be very few condos.
If the condo is not on the HUD site, it will not likely be approved for a Conventional loan without a limited review approval. Check the Fannie Mae Approved Project List website.
How do you get a limited review approval? Unless the project is a non-warrantable condo, you put 25% down and that’s it. If you don’t have 25% to put down, you can get a 75% first mortgage, and a 15% second mortgage. Below are some highlights:
- Loan is a Home Equity Line of Credit
- No mortgage insurance
- Maximum combined loan to value of 89.99%
- Non-occupant co-borrowers not allowed
- No reserve requirements
- Gift funds allowed
- Max housing ratio is 38% and max Debt to Income ratio is 45%
- 700 minimum middle credit score up to $750,000.00
- 730 minimum middle credit score between $750,000.00 and $1,500.000.00
To calculate your monthly mortgage payment and cash you will need, use our Loan Estimate tool. Enter the price, taxes and hoa fees, and select the Conventional loan type. Select Include Escrows and Second Mortgage checkboxes. If you want 90% financing, for down payment enter 25%. Select your credit score, enter your interest rate and any discount points or lender credits. Under Second Mortgage Amount enter 15% and the interest rate for Second Mortgage Rate. Calculate.
For more information please contact Bluecastle Lending at 954-866-0000 or firstname.lastname@example.org. Bluecastle Lending is an Equal Housing Lender.