1. [Type text]
Condominium Financing Quick Review
We are excited to offer financing on condominium projects that meet these relaxed
standards:
Established Buildings (90% sold and closed, entire project is 100% complete):
• Maximum financing 90% owner occupied; 75% second home – all conforming loan amounts
($417,000)
• No condominium questionnaire required
• No maximum investment concentration
• No review of percentage of unit owners delinquent on assessments
• No Pending litigation – is allowed if underwriter can determine it has no negative effect on the
marketability or health and safety of the building
• Commercial space is allowed up to 20% of the building
• No more than 10% units can be owned by single entity (this does not include bank owned
properties)
And more traditional project standards:
New Construction/Conversion/up to 97% LTV/Jumbo/Investment:
• Required full project review and approval
• Fully executed questionnaire, Decs/Bylaws/Budget and Balance Sheet
• Typically 70% of the units must be sold or under contract and no more than 49% can be investment
use
• No Pending litigation – is allowed if it can determined it has no negative effect on the marketability
or health and safety of the building by investor exception
• No more than 10% units can be owned by single entity (this does not include bank owned
properties)
• Reserves must be 10% of the annual operating budget
• All common elements must be complete
• Right of First Refusal can be an issue and must review language for
• No more than 15% of total number of units are 30 days or more delinquent on their HOA
• Right of first refusal can be an issue, must review language in the decs.
With questions or scenarios contact:
John Poast
312.543.0688 john.poast@keymortgageservices.com