The project matters as much as the unit
Condo underwriting may consider project insurance, association finances, ownership concentration, litigation and building condition. Obtain association documents early so a project issue does not first appear near closing.
For an investor, association rental restrictions can affect the proposed use and rental-income documentation. Confirm that the intended lease term is permitted.
Match occupancy and documentation
DSCR evaluates an eligible investment unit on rental cash flow. Prime Time can review borrower income for eligible primary-residence, second-home or investment occupancy. Conventional financing depends on agency and project eligibility.
The Prime Time property matrix caps condos at 85% LTV, subject to a lower limit from the income, credit, loan-size or occupancy matrix. Foreign National DSCR condos have their own 70% purchase and 65% refinance property caps.
Distinguish a condo from a condo hotel
A condo-hotel or condotel can have hotel services, transient occupancy or an onsite rental program. It requires the applicable condo-hotel review. A unit marketed as a condo does not automatically qualify as an ordinary condominium.
Documents to request early
Coordinate with the association or management company before relying on a financing estimate.
- Condo questionnaire and governing documents.
- Master insurance and unit insurance information.
- Association budget, dues and known special assessments.
- Rental policies and lease or income records for an investment unit.
Questions about condominium mortgage options
Does an approved borrower guarantee condo approval?
No. The project and unit must also satisfy the selected program’s requirements.
Related financing and resources
Financing depends on the property, occupancy, documentation, credit and applicable program guidelines. Final terms and availability require underwriting review. This information is educational and is not a commitment to lend.
