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

By
Real Estate Mortgage Broker with www.DaveYourMortgageGuy.com, FHA, VA, USDA, HomePath, Jumbo
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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David Krichmar 

Mortgage Banker NMLS#293883 NMLS

Core Lending dba of Weststar Mortgage Corporation

Branch NMLS#868672  WMC NMLS#93243

Has Written For Realtor Magazine, Houston Agent Magazine, Scotsman Mortgage Guide

 

Named 5 Star Mortgage Professional 2013

 

Named Top Mortgage Professional 2010,2011

 

Office:832-689-6012

David.Krichmar@gmail.com

www.DaveYourMortgageGuy.com

For More Mortgage Info Follow me at  Dave's Blog

DaveYourMortgageGuy.com is Voted the #1 Mortgage Professional in Houston, Texas.  2011

If you are looking for a FHA, VA, USDA, Homepath, Conventional, Jumbo, Construction, FHA 203k mortgage in Fort Bend County, Sugar Land, Houston, Katy, Harris County, Brazoria County, Pearland, Richmond, Bellaire, West University, The Woodlands, Kingwood, Friendswood, Clear Lake, Galveston, Fulshear, Tomball, Spring, Conroe, Montgomery County or anywhere in Texas I am your GUY!  

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Rainmaker
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Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages
www.genemundt.com

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

July 19, 2012 01:52 PM
Rainmaker
304,044
David Krichmar
DaveYourMortgageguy.com
www.DaveYourMortgageGuy.com, FHA, VA, USDA, HomePath, Jumbo

Thanks Gene!!

July 19, 2012 02:20 PM
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Rainmaker
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