March 28th, 2019 9:02 AM by Devin Murray
In the last three years the most successful way to finance a condo anywhere in the country was to find a unit that was in an eligible project (less than 1 in 10 chance) or put anywhere from 10% to 30% down and hope that whatever made that condo project ineligible would be avoided in a limited review. This situation and the host of problems it created have forced the masses to seek portfolio or private financing with 20-30% down payment requirements thereby barring most from ever owning a condo.
As we have mentioned before regardless of limited review or full review status, Fannie Mae knows the number one killer of conventional condo financing is high investor concentration, high single entity ownership, and an associations involvement in litigation. Realizing how damaging this has been to existing owners and potential buyers here is summary of what has changed:
Conventional – more updates coming in June 2019
Conventional LTV Updates
Like Fannie Mae It is noteworthy to echo that “Spot approvals” from HUD are now re-branded as “Single Unit Approvals” are rumored to be released in May 2019. Not seen since 2010 these allow a lender to approve loans on units that don’t have project approval subject to minor limitations. Once this change is released this will open up FHA financing for condos in all markets across the country.
At the time of this post there are 124 Approved in FL and 21 in AL but FHA condos projects but the update here is not non-Florida condos can be approved in as little as 48 hours. Existing HUD approved condos can still be found here
VA CondosIn closing it is important to mention that VA condos never expire. In Florida there are 1612 with “Accepted” status and in Alabama there are 166. If you want to know if certain projects in your area are approved, please email us and we can generate and send you a printout.
If you would like to learn more about condo financing in Florida or Alabama, you can apply online 24 hours a day or contact a licensed originator by phone during normal business hours at 888-269-8335.This information is subject to change at any time. The information herein does not constitute a commitment to lend.Photo Credit: Jeremy Kierez @jeremykierezDisclaimer