Condo Mortgages
What You Need To Know About Financing A Condominium

Mortgages for condominiums are more complicated than mortgages for single family homes and PUDs. The reason for this is the condominium must be underwritten in addition to the borrower. When a buyer purchases a single family home, the lender underwrites the borrower and reviews the appraisal, title, and insurances. When a buyer purchases a condo, the lender underwrites the borrower, appraisal, title and insurances; but also underwrites the condominium. The level of scrutiny of the condo review process depends on several factors, including: your down payment, occupancy type, and loan type (conventional Fannie Mae/Freddie Mac, FHA, VA, Portfolio, Non-Warrantable). What many buyers fail to understand is that this condo review process is performed independently from the review of their credit profile.

If the condominium is not approved, the mortgage is denied; regardless of the stand alone strength of the buyer’s credit profile. As a result, many highly qualified borrowers assume that their Condominium Mortgage will get approved because of their individual strength. Since Condominiums are underwritten independently, many of these loans end up denied because the buyer did not focus on selecting a lender to work with that is highly experienced in approving condo loans. In addition, it is imperative that the lender has multiple condo approval options: Limited Review, Full Review, or Non-Warrantable Condo Review; & offers multiple Condominium Mortgage Approval channels: Conventional Fannie & Freddie, FHA, VA, Jumbo, and importantly- Portfolio loan program options.

Select Home Lending is a boutique Mortgage Broker that has been a leader in the condo mortgage financing market since 2024. Our corporate headquarters is located in South Florida; one of the most diverse and complicated condominium markets in the county. We specialize in loan fallout from major institutions such as Wells Fargo, Chase, Bank of America, Quicken Loans, etc. If you have applied for a Condo Mortgage only to have the project denied, contact one of our Licensed Mortgage Broker for a detailed review of your scenario to see how we can help today.

There are several best practices to follow when shopping for condos & deciding whether to apply for a limited review or full review condo loan approval. Following this best practice list will help you evaluate which approval option your project is eligible for, and answer any uncover potential problems as early in the loan process as possible and enable you to change programs if necessary- before it’s too late.

Click here to Review the Fannie Mae Approved Condo List to Search for Fully Approved Condos in your Area.
Do a quick google search or ask your realtor whether the condo offers hotel services or centralized rentals.
Ask for a copy of the approved budget BEFORE you make an offer. The budget is one of the most common reasons a condo project is denied under the Full Review program. It is usually very easily attainable at no cost from the seller’s realtor or the association and is a quick indicator whether the project may be eligible for a Full Review approval or not.
Ask for a copy of the insurances:

Master
Flood (if applicable)
Fidelity (if the project has greater than 20 units)
Law and Ordinance

The insurances are also typically relatively easy to obtain at no cost. A quick review of the insurance basics by a Select Home Lending Broker will let you know if there are any obvious deficiencies that would prevent eligibility for Limited or Full Review approval and require you consider other non-traditional non-warrantable options.

Ask for copies of any pending litigation the association is involved in. Your Select Home Lening Mortgage Broker can review open litigation for cases pertaining to structural litigation or lawsuits that might threaten the liquidity of the operating budget which could impact the project’s approval.
Order A Condo Questionnaire

If the above items appear to meet guidelines, make sure a condo questionnaire is ordered at the beginning of the loan process. The association may charge anywhere from $75 - $250 for the Condo Questionnaire. The Condo Questionnaire will contain more detailed information impacting project approval. Obtaining this information at the start of the process will help you determine whether there are any problematic items early in the process.

Make sure you select your insurance agent (for your HO6/Contents Policy) at the beginning of the process. Most Lenders will not submit the condo approval information to their condo review department until the complete package is put together. This includes your contents policy.
If you are financing in Florida and the condo is ineligible for a Full Review Approval, but you want or need to make a small down-payment for a purchase or have limited equity for a refinance loan, consult with a Select Home Lending Mortgage Broker to consider splitting up the financing into a 1^st and 2^nd mortgage. Reducing the 1^st mortgage LTV to 75% for a primary residence or 70% for a second home and taking out a 2^nd mortgage may help you accomplish your goals and bypass Full Project Review requirements.

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Condo MortgagesWhat You Need To Know About Financing A Condominium

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Condo Mortgages
What You Need To Know About Financing A Condominium