IS IT TRUE BANKS ARE NOT LENDING ON CONDOS? I WANT TO BUY ONE ON MIAMI BEACH, I AM APPROVED FOR CONVENTIONAL, I HAVE THE DOWN PAYMENT...

Asked by Bryan Cunningham, Miami, FL Fri Apr 19, 2013

BUT AM TOLD THAT NO BANKS ARE FINANCING CONDOS

IF YOU CAN GET ME IN ONE, THAT WOULD BE GREAT

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Answers

34
Juan Sanchez, Agent, Coral Gables, FL
Tue Jun 4, 2013
Not all true; banks will lend providing the building qualifies under the Fannie Mae criteria. Cut and paste the following link into your browser; https://www.fanniemae.com/singlefamily/project-eligibility?from=hp . Once there, select your state and a list of the approved building will come up.

Another way of knowing if a building qualifies for a conventional loan would be to ask your mortgage broker about a particular building or for the list. If you don't have a mortgage broker I can help. One catch, if the building doesn't qualify, you may still be able to get a loan providing you are able to come in with a greater down payment.

I would be very happy to assist you. You may call me at any time to 786.302.0351
1 vote
Flag Sun Jun 5, 2016
Sherry Green…, , Boynton Beach, FL
Sat Apr 20, 2013
Bryan,

Yes, let me assure you that financing for condo's still does exist! You have to look at the 'entire' scenario and not just that you have been approved for a conventional mortgage.

There are two (2) types of condo's: warrantable and non-warrantable. A non-warrantable condo is one where the building does not fit Fannie Mae guidelines. In that case, you would need to put down 25% on the sales price. After all is said and done, the Lender's will also take into account the percentage of primary and those residents who own as a second/vacation home versus how many units are owned by investors who are renting them out in the complex. Quite possibly you're unable to secure financing due to the fact investors out-weigh actual primary/second home ownership.

The question you submitted stated you were approved for conventional financing. If by some chance you were looking into going with an FHA mortgage, then the condo building must be on the ' FHA approved condo's' (easily found by Googling). The condo must appear on that master list.

If there is anything further I can help you with, please contact me directly @ 561-271-1611.
Sherry Greenwald
Banker's Mortgage Lending, Inc.
http://www.FHAMortgageLoan.com
Weston, FL 33326
1 vote
My NC Homes…, Agent, Chapel Hill, NC
Sat Apr 20, 2013
Banks are not financing condos that are not on the FHA approved list The reason is often one of the following:

Too many non owner occupied units
Insufficient capitol reserve funds
Failed to file the annual paperwork
Too may owners behind on the HOA fees

There are plenty of condominium developments that are approved and can be financed in the usual manner. You may check to see if a particular development you're interested in is on the list at this web site: https://entp.hud.gov/idapp/html/condlook.cfm

Hope this helps
1 vote
this is the first i have heard of this. I checked out the link and it has lots of great info. Why dont all realtors know this instead of giving me a general answer, i dont know.
Flag Sat Apr 20, 2013
, ,
Sun Jan 22, 2017
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• 100 % VA Condo Mortgage Loans Down to a 550 fico!

• 96.5% LTV on FHA Approved Owner Occupied Condos= 3.5% Downpayment!

• 95% LTV on Owner Occupied Condos= 5% Downpayment!

• 90% LTV on Second Home Condos= 10% Downpayment!

• 80% LTV on Second Home Condos= 20% Downpayment

• 80% LTV on Investment Condos= 20% Downpayment.

• 75-80% LTV on Florida Non Warrantable Condos + Condotels.

FHA Condo Loans Down to 580 Fico with 3.5% Down.
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Florida Fannie Mae Approved Condo list for 2016.
FLORIDA NON WARRANTABLE CONDO LENDERS
http://www.florida-mortgage-lenders.com/condo-loans.html
0 votes
, ,
Sun Nov 20, 2016
All condo loans are subject to condo questionnaire. Every time a buyer applies for a mortgage, the lender has the condo association fill out something called the “condo questionnaire”. It looks like this and, after each question, is the required answer in order for the condo to be in compliance with Fannie Mae's requirements.


US Mortgage Lenders - Thomas Martin
Min FICO 580 FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110
http://www.florida-mortgage-lenders.com/
http://www.fhamortgageprograms.com/
0 votes
, ,
Sun Nov 20, 2016
We approve buyers daily for condos in every city and county in Florida.

US Mortgage Lenders - Thomas Martin
Min FICO 580 FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110
http://www.florida-mortgage-lenders.com/
0 votes
, ,
Fri Oct 9, 2015
Hello

This is not true, I work for one of the biggest lenders in the country and we are doing condo loans all the time

pls call me for details on LTVs and guidelines

Tom Bawany
Loan Officer
Envoy Mortgage
NMlS #519971
407 924 2759
tbawany@envoymortgage.com
0 votes
, ,
Wed Sep 2, 2015
Hello

This is not true

Most Lenders do Condo loans,
They require a little more and different paperwork but we do them all the time

for a conventional loan we can go up to 95% for a qualified borrower and property

Pls call me for details

I do loans all over Florida


Tom Bawany
Envoy Mortgage
Maitland, FL
Mortgage Loan Officer, NMLS # 519971
407 924 2759
0 votes
Ybh1941, Home Buyer, Vero Beach, FL
Tue Jul 21, 2015
where can I find a loan for paying on credit card debt. I own my condo, and need to borrow $17,ooo.
0 votes
Prosper.com
Flag Wed Jan 13, 2016
Javier Olmedo, Agent, Miami, FL
Wed Jul 8, 2015
Not at all. I have closed on 5 condo sales in the last two months and they have all been financed. I am not sure where you are getting your information from and can promise you it is incorrect.
0 votes
Jeri Patrick, Agent, Pooler, GA
Sun Jul 5, 2015
You can contact a local lender to see what condo loan options are available for you. Best of luck
0 votes
Brian Martuc…, Mortgage Broker Or Lender, Bethesda, MD
Mon Mar 30, 2015
I'm not sure who told you that banks are not lending on condominiums, but that is untrue. There are lots of different rules related to getting a loan on a condo, but talk to a lender to see if the condos that you are interested in are approvable. There are many lenders lending on condominiums. We are one of them, and are licensed in all 50 states. Good luck.
0 votes
Dan Maza, Agent, Miami Beach, FL
Sun Nov 23, 2014
Hello Bryan

It is not true!!!
Banks are lending to US citizens and even legal foreign nationals with tourist or business visas.

Yes, the loans are at diff. rates and terms but they are lending based on the LTV (Loan to Value) of the property. If you are pre qualified, my sale group would be happy to assist you.

We have over 16 years of experience in this market and are the Florida leader in annual sales for the past 3 years within Keller Williams.

Please visit our web site at http://www.MiamiRealEstateTrends.com or http://www.MiamiCondosFL.com
You may also reach us at (305) 433-2818

My team and I look forward to assisting you!
0 votes
Toni Miller, Home Buyer, Jacksonville, FL
Sat Nov 22, 2014
We provide condo loans in every county and city in Florida
http://www.florida-mortgage-lenders.com/condo-loans.html
0 votes
Jill Rendolds, Home Buyer, Saint Petersburg, FL
Sun Nov 16, 2014
http://www.florida-mortgage-lenders.com/condo-loans.html
we provide condo loans in every city in Florida.
0 votes
Alan Karan, Other Pro, AVENTURA, FL
Wed Feb 26, 2014
Hello Bryan,

You can buy a condo through Homepath program - foreclosures from FNMA.
You can also buy a condo with 25% down, owner occupied property - under limited condo review programs - if your lender has such programs. If not - give me a call!

Most condos don't have reserves, or their owner occupancy ratio does not match lenders' guidelines,
but there are condos that are fine (and this changes about every month)...Those condos that are fine - will withstand the lender strict rules, and you can buy there with 10% down. Banks may not know if the condo is good until the budget, profit and loss, balance sheet, all condo documents are submitted
to the condo review department within your mortgage lender organization.

By then, you'll be out of inspection money, appraisal money, and your lender application fees (if any)...That's why Homepath with their low down payment is a very good program to buy a condo in Miami - plus they don't do the appraisal, which saves you $350.

Best of luck!

Alan Karan
Beachfront Realty, Inc.
AlanKaranFL@gmail.com
0 votes
JenWilson21, Home Buyer, Fort Myers Beach, FL
Wed Feb 19, 2014
Miami FLORIDA CONDO LOANS
• 96.5% LTV on Owner Occupied Condos= 3.5% Downpayment!

• 95% LTV on Owner Occupied Condos= 5% Downpayment!

• 90% LTV on Owner Occupied Condos= 10% Downpayment!

• 80% LTV on Second Home Condos= 20% Downpayment

• 80% LTV on Investment Condos= 20% Downpayment

15, 20 and 30 year fixed rate terms available! Min 580 Fico!
http://www.florida-mortgage-lenders.com/condo-loans.html
0 votes
Samantha Ten…, Agent, Boca Raton, FL
Wed Feb 12, 2014
Generally not true, but sometimes lending underwriting requirements depend on the condo building and the status of the property.

Samantha Tenzer-Friedman
Tenzer Realty
(786) 314-6100
0 votes
Jack Wilson, , Florida
Mon Feb 10, 2014
Miami FLORIDA CONDO LOANS
• 96.5% LTV on Owner Occupied Condos= 3.5% Downpayment!

• 95% LTV on Owner Occupied Condos= 5% Downpayment!

• 90% LTV on Owner Occupied Condos= 10% Downpayment!

• 80% LTV on Second Home Condos= 20% Downpayment

• 80% LTV on Investment Condos= 20% Downpayment

15, 20 and 30 year fixed rate terms available! Min 580 Fico!
http://www.florida-mortgage-lenders.com/condo-loans.html
0 votes
, ,
Fri Jan 31, 2014
I just closed two condos last month. One in Orlando and one in Ft Lauderdale. One was investor so it required 20% down. The other one was owner occupied so it qualified for 95% financing but the buyer chose to put 10% down. Neither was on the so called Fannie Mae approved list. So they went through a full project approval and were determined to be "warrantable". That's not to say that just any condo will be approved. But we can look at certain data from the Home Owners Association initially before you go too far, to determine the likelihood that it will be approved. It can be done at up to 95% financing for owner occupied. Furthermore, your condo my qualify for what's called a limited review, which is a much less stringent approval but you would have to put 25% down, again even if it's not in the Fannie Mae's list. Give me a call if you want more information.

Jose Morales
Innovative Mortgage Services
NMLS#:225888
561-432-9237
info@floridamortgagecoach.com
0 votes
Consuelo Pen…, , Weston, FL
Fri Jan 31, 2014
Brian this statement doesn't apply to all condos. In some cases, Condo HOAs don't have enough reserves to meet the criteria to lend. Also, some Condo HOAs have more than 10% delinquincy rate, meaning that more than 10% of the owners are behind with their dues and the banks will not take the risk. All HOAs are different. I can help you find an area that will not have that problem.

Please call me at 954-536-3495 to discuss possible opportunities.

Regards,

Consuelo Peniza, MBA,SFR,e-Pro
Realtor-Associate
KELLER WILLIAMS PROPERTIES
0 votes
Consuelo Pen…, , Weston, FL
Mon Jun 3, 2013
Banks are working with condos. The reality is that some condo associations are broke (only a few). That is the real reason some condos listings will only accept cash. It will all depend what condo you want to buy.

Hope this answers your question.

Consuelo Peniza
954-536-3495
Real Living FSR
0 votes
Alberto Rome…, Agent, Miami, FL
Sat Apr 20, 2013
The only Bank i know is lending without any problem is Wells Fargo, with 20% down you'll get it, they don't request a condo questionably which is the rock on the shoe on this type of deal.
0 votes
unfortunately, Wells fargo just turned down a client buyer seeking condo loan with 20% loan just because the condo did not have the required flood ins!
Flag Mon Mar 3, 2014
Maria Elena…, Agent, Miami, FL
Sat Apr 20, 2013
Banks are indeed lending on condos. If you are unable to get one it is probably because you are not working with a Realtor or you are trying to buy a REO or short sale. I am Realtor and I work with one of the best mortgage brokers in Miami and I would be glad to help you.

Maria Elena Ramirez Malca
Sellstate Gold Realty
ramirezmalca@yahoo.com
0 votes
iRent iSell…, , Miami Beach, FL
Sat Apr 20, 2013
Hi Brian, I am a real estate agent with Coldwell Banker on Miami Beach. Our company has its own Mortgage Banker and will be able to help you. Please send me your information if you want us to help you. Mariamiamire@gmail.com
0 votes
Yanoska Diaz, Agent, Miami, FL
Sat Apr 20, 2013
Just out of curiosity and in response to your reply, are you using a Real Estate Professional to assist you in searching for the Miami Beach Condo and the other property you are looking to purchase through the VA loan? A well seasoned agent should be able to provide you/show you properties he/she believes will cater to your specific needs. For example, in today's market (in my very own humble opinion) a Buyer purchasing through financing should not be looking at fixer uppers/handy man specials, the lowest end of the market activity, short sales, REO and "cash only" ( while this last one seems very obvious, agents send me offers subject to financing on my listings all the time...).
0 votes
Oscar Mena, Agent, Miami, FL
Sat Apr 20, 2013
Bryan,
If you were approved for a conventional loan you should be able to get a condo loan in Miami, speak to your loan officer who got you approved and ask about a condo loan? Where did you hear that banks are not lending on condos?

Best of luck on finding your next home.
Oscar
0 votes
Alberto Baca, Agent, Miami, FL
Sat Apr 20, 2013
That is not correct, banks are still lending on condos however, it is easier to get a conventional loan on a condo than it is to get an FHA loan. Many condo associations are not FHA approved.

Regards,
Alberto Baca
The Keyes Company
305-218-2504
0 votes
Giselle Muñ…, Agent, Coral Gables, FL
Sat Apr 20, 2013
If you are approved for conventional you may be able to close with Regions Bank bringing 26% down even if the condo is not Fannie Mae approved but through Regions Portfolio. You can contact me directly gperez@bluepenrealtors.com. Good luck!
0 votes
I was told something similar. I will have to look into it. Thank you.
Flag Sat Apr 20, 2013
Yanoska Diaz, Agent, Miami, FL
Sat Apr 20, 2013
Bryan, weren't you financing through VA? How much of a down-payment do you have? There are different Lenders and different programs, the issue, the BIG issue, as I responded to your other question is if the Seller is willing to take your offer subject to financing.
0 votes
I am qualified for both Conv and va. I have more than necessary for downpayment but want to use va for various reasons if possible. Sellers prefer cash obviously but I am having a difficult time with offers. thanks
Flag Sat Apr 20, 2013
Josh Barnett, Agent, Chandler, OK
Sat Apr 20, 2013
click on the "Mortgage" tab at the top, type in the zip code you are going to be purchasing in, contact the lenders that show up for that zip code.
0 votes
Yes, this was the first step in the home buying process. thank you.
Flag Sat Apr 20, 2013
Maria Diaz, Agent, MIAMI LAKES, FL
Sat Apr 20, 2013
Bryan, that not true, there are a lot of condos where you can make a funded purchase. Good luck, Maria Diaz marilindiaz@gmail.com
Coldwell Banker
0 votes
Not true? Spend a week wasting gas with me. You ll change your mind.
Flag Sat Apr 20, 2013
, ,
Sat Apr 20, 2013
Bryan, we have lenders that loan on condos. There are certain rules that have to be met and not all condos qualify. But it can be done. Call me to discuss.

Jose Morales
Florida Mortgage Coach
561-432-9237
jmorales@floridamortgagecoach.com
0 votes
thank you
Flag Sat Apr 20, 2013
Gregorio Den…, , San Diego, CA
Fri Apr 19, 2013
How can you be approved yet unable to get financing? Who approved you and what did they approve you for?
0 votes
i am approved for townhouses and sfh by bank of america for over 300k. Condos are not being financed i was told by boa. yes i have more than the required downpayment.
Flag Sat Apr 20, 2013
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