Since the value and marketability of condominium properties is dependent on items that don’t apply to single-family homes, there are some additional steps that must be taken to determine if condominiums meets program guidelines. One of the most important factors is determining if the project that the condominium is located in is complete. In many cases, it will be necessary for the project or at least the phase that your unit is located in, to be complete before we can provide financing. The main reason for this is, until the project is complete, we can’t be certain that the remaining units will be of the same quality as the existing units. This could affect the marketability of your home. In addition, we consider the ratio of non-owner occupied units to owner-occupied units. This could also affect future marketability since many people would prefer to live in a project that is occupied by owners rather than renters. Lastly the HOA fee collection and delinquency percentage is another piece of information that is crucial and telling of the financial health of the HOA. In most cases more than 15% delinquency of owners in the association will be seen as a non-approvable HOA and condo project. We also carefully review the appraisal to insure that it includes comparable sales of properties within the project, as well as some from outside the project.

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