Condo/Condominium Mortgage - New York Mortgage

A condominium, or condo, is a real estate development project that houses many
apartment units, with shared common areas and facilities. More often than not, the term
refers to the individual units rather than the project as a whole.

Almost all condominium projects have a homeowner association. Its function is to
manage and upkeep the condo project. The typical homeowner association
responsibilities include collecting monthly common charges, maintaining shared areas
and facilities.

Many banks make mortgage loans that are secured by condos. The loan qualification
requirement are similar to that of loans secured by single family houses. However, the
condo development must also be approved by FNMA. In order for a mortgage to be
eligible for sale to FNMA or FHLMC on the secondary market, the condominium project
must meet certain requirements set by Fannie Mae. Some of the requirements include
the minimum number of units already sold, the number of owner occupied units and the
number of rental units in relation to the total units in the project, and if any one investor
owns more than a certain percentage of total units.

Loan programs typically available to single family properties are also available to
Condominium buyers. Almost all loan types, including the more popular 15-year fixed
rate mortgage, 30 year fixed, and Adjustable Rate Mortgage are offered to condo unit
owners. Different documentation types, such as Full Doc, Stated Income are also available. Keep in mind interest rates and origination point can be much higher with less income documentation requirements.

The loan process usually takes longer for a condo because the appraisal process
involves an extra step. It requires the homeowner association to complete a
questionnaire and to provide proof of insurance for the condo building.

While some banks charge a higher interest rate on coop mortgages, the interest rates
on condo mortgages are the same as single family houses.










					Registered Mortgage Broker - NYS Banking Department. Loans arranged through third party providers. This is not a commitment to lend. Loan programs subject to change without notification. Equal Housing Opportunity.