Are You Considering a Condominium?

If you are considering the benefits and conveniences of condominium or condo living, you have come to the right place. Premia Relocation Mortgage can help you navigate the requirements of financing. Condo financing differs from single-family home financing as all lenders must meet additional guidelines.

What is a Condo?
A condo is a structure where individuals/families own a single unit and some common areas within a multiunit structure. Condo owners are typically members of a Homeowners Association (HOA) and pay to have common areas maintained and serviced. HOAs are nonprofit corporations or associations with no ownership interest in the common areas; however, in a planned unit development it may hold the title to common areas.

Conventional Financing
Many condo projects across the country are eligible for conventional financing. Here are some of the
guidelines a condo must meet to be eligible:
  • All units and common areas in the project are 100% completed
  • Ownership requirements may apply. Some loans may require:
    • ◦ 50% - 70% of the units be sold as primary residences or 2nd homes
    • ◦ Less than 10% of the units are owned by an investor
  • The homeowners control the HOA and are in good standing with dues
  • HOA must not be involved in any legal disputes or mediation
  • HOA must be financially sound, i.e. budget, reserves, adequate insurance
  • Limits may apply to non-residential purposes within the structure; i.e. restaurants
Other Types of Financing
FHA and/or VA financing do require additional requirements. It is best to talk to with your Relocation Mortgage Consultant to determine a unit’s eligibility.
Call us today! 866.591.0655
- Feb 03, 2021