NON-WARRANTABLE CONDO LOAN PROGRAM
(No Condo Questionaire Required)
Condo Hotel Description
Condo Hotels are a new trend in second home and investment
ownership. Buyers can purchase a luxury vacation home at a
world class resort and receive rent revenue whenever they are
not using their residence, helping to offset the costs of
ownership.
Exceptable Property Types
- Condos that allow rental desk, daily maid service, &/or restaurant.
- Apartment Conversions with Full Size Kitchen over 950 Sq. Ft.
- Minimum Kitchen Requirements are enforced:
Full Size Refrigerator, Stove/Oven, and Sink; Microwave recommended, but Optional.
Loan Programs - Easy Express 3/3, 5/5, 10/5 or 15 yr Fixed Rate Program.
- Margin = 2.00
- Caps: Lifetime Cap of 6
- Index: FNMA Required Net Yield for 30 yr Fixed Rate Loans
- Min. Credit Score = 680 for Primary and 2nd Homes; 710 for Investment Property.
******** Or ********* - Easy Express 3/1 or 5/1 ARM Interest Only Program
- Margin = 2.25
- Caps: 2/6 (3/1 ARM) or 5/2/5 (5/1 ARM)
- Index: 1 Yr Libor
- Min. Credit Score = 710 to qualify for Interest Only Program
Underwriting & Program Parameters - FULL DOC with No Prepayment Penalty
- VERIFY ALL ASSETS, BOTH LIQUID AND RETIREMENT.
- Financial Strength is Key in Underwriting.
- LTV is limited to 60% LTV (55% LTV in declining markets) if any of the following apply:
*Unit is Less than 750 Square Feet
*Unit Doesn’t Contain a Full Kitchen (Full Size Stove/Oven, Refrigerator, & Sink) - LTV can be raised from 60% up to 100% if:
*The Cross Collateralization Program is utilized with a 1st or 2nd Lien against the Applicant’s Primary Home. - If Condo Received C.O. 1/1/2007 to present date, Max. LTV = 75%.
Primary & 2nd Homes - Max. Term = 30 years
- 100% LTV with Cross Collateralization
- 80% LTV with NO MI for Credit Scores 710 and higher; 70% LTV for Scores 680 to 709.
- All Refinances are Limited to 70% LTV.
***If property is located in FLORIDA or a Resort AREA, take 5% off for declining Markets.***
Investment Property
(Purchase or Rate/Term Refinance Only) - Max. Term = 15 years unless Equity is $50K or more, the term = 20 years.
- Max. LTV = 70% or 100% LTV with NO MI with Cross Collateralization of a 1st or 2nd Lien against Borrower’s Primary Home or 2nd Home and Possible Amortization of 30 Years.
New Condo Complexes Require Inspection and a Spreadsheet of the Following: - Original Contract Date of all Units,
- Square Footage of all Units,
- Original Contract Price per Unit,
- Closing Date or Estimated Closing Date Per Unit.
- 40% of Complex must be Closed or Pending to Close Before Our Unit is Closed.
- Maximum Complex Penetration is 10%. That is, we will normally only finance up to 10% of the units.
INELIGIBLE PROPERTY TYPES - Properties managed by a National Hotel Chain (such as Hilton, Westin, etc.)
- If the Unit is Required to Participate in a Rental Pool.
- If the Developer is still in CONTROL of the Homeowner’s Association.
(Exceptions will be considered if Low LTV (50% or less) or if additional collateral is provided.)
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