What is a full condo review?
The Full Review process is a method for the review of new and established condo projects, co-op projects, and certain manufactured home projects. Lenders performing a Full Review must ensure that the project meets all applicable eligibility requirements.
What is the difference between a full and limited condo review?
The two types of approval are a limited review and a full review. Getting a full review approval usually allows the homebuyer to finance up to 95% to 97% of the LTV if the condo is owner-occupied, or up to 90% of the LTV if it’s a secondary home, and up to 85% of the LTV if the condo is an investment property.
Which condo must have full review?
The criteria for a full review is that the condominium needs to have 51% or more of its units be an owner occupant. This means it needs to be a warrantable condominium unit. Mortgage lenders do not want to see any more than 15% of the condo homeowners association dues delinquent for more than 30 days.
How long does a condominium last?
What the law refers to in the 50-year rule is the lifespan of a corporation which is essentially the same to unit owners who make up the condominium project. However, the condominium corporation can actually be renewed for another fifty years so the ownership does not necessarily end.
What triggers a full condo review?
Who typically pays for the condo questionnaire?
The fee for a condo questionaire is generally about $250-300. The prospective borrower typically pays the fee.
What is a streamlined condo review?
Streamlined Review Process for Established Projects To expedite the process of getting a condo mortgage, Freddie Mac has a streamlined review process for established condo projects. Unit falls under the established project category. The mortgage must meet the required LTV/TLTV/HTLTV ratios for the occupancy type.
What is the difference between a limited review and a full review on a condo?
A Limited Condo Review is a streamlined program offered by Fannie Mae & Freddie Mac for loans categorized as lower risk. Condominiums underwritten under the Limited Review program are several times MORE LIKELY TO BE APPROVED than those submitted under the Full Review program.
How many years does a condo last?
How long do condo units last?
Advanced technologies are increasingly put to use, so modern condos will likely still be in good shape even after 50 years. And as previously mentioned, you’re a shareholder of your condominium corporation.
What is condo survey fee?
This applies only if you’re buying a new HDB flat or Executive Condominium (EC). There’s a survey fee of anywhere between $150 to $375 (depending on your unit type), which covers the cost of a surveyor inspecting the condition and value of your flat.
How do I finance a condo?
In order to finance a condo, you’ll need to qualify for a condo loan that’s tailored for an investment property. Condo loans are generally harder to qualify for than standard mortgages, because your lender will scrutinize the entire condo property.
Is a condo a good investment?
When considering a condo as an investment, you must accurately estimate: the annual rent you may receive, and the annual expenses you will incur, including such things as: real estate taxes. insurance
How much will my condo appreciate in the first year?
If you expected real estate to rise about 3% per year, in the first year your condo would appreciate from $55,000 to $56,650, for a gain of $1,650. If you cannot pay cash and must finance the property, you’ll also have to factor in the interest cost.