What is the Condo Limited Review? Well, it may just save your Deal

By
Mortgage and Lending with www.DaveYourMortgageGuy.com, FHA, VA, USDA, HomePath, Jumbo NMLS #293883
http://actvra.in/F89

We all know condo financing has gotten ridiculously hard.  Few are FHA Approved, taking out the FHA mortgage option for someone buying a Condo.  So that leaves us with the Conventional loan route.  But many lenders and mortgages require an owner occupancy of 70%+.  The owner occupancy rate is the % of people who own and live in their condo vs those who rent out their condo.  So what do you do if the condo is “non warrantable” and does  not meet the owner occupancy rate needed to get approved for a mortgage……..

The Answer is the Condo “Limited Review”.  Here is how it works:

 

1.      The client qualifies for it when getting a Fannie Mae Automated Approval.  Which should be done when a lender is pre-approving the client.  If you know they are buying a condo be sure to ask if the lender ran their Fannie Mae Approval and did it qualify for a Limited Review

2.      In my experience the most clients who qualify for the Limited Review have excellent credit and are putting down 20% as their down payment.  And the condo will be their primary home. 

3.      By having a Limited Review the lender will not ask what the owner occupancy rate is for the condominium project.

If you are helping a client buy a condo or have a condo listed for sale, you want to know about the Limited Review!!

 

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Texas Harris County Houston
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Mortgages
Tags:
condo
texas
fha
financing
houston
county
harris
mortgage
conventional loan
owner occupancy
non warrantable
limited review

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Rainmaker
807,603
Gene Mundt, Chicago-area Mortgage Lender - www.genemundt.com
NMLS #216987 - New Lenox, IL
708.921.6331 - 37 yrs experience

Dave:  I think it's great that you keep the condo conversation and education going.  You're absolutely right when you say that the condo market is "challenged", to say the least.  Working with a mortgage lender that knows and understands the challenges ... and also the options that buyers might have available to them is vitally important.  Keep spreading the word, my friend!

Gene

Jul 19, 2012 01:52 PM #1
Rainmaker
356,657
David Krichmar
www.DaveYourMortgageGuy.com, FHA, VA, USDA, HomePath, Jumbo - Sugar Land, TX
DaveYourMortgageguy.com

Thanks Gene!!

Jul 19, 2012 02:20 PM #2
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Rainmaker
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David Krichmar

DaveYourMortgageguy.com
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