THIS IS OUTDATED NEW RULES HAVE BEEN IMPLEMENTED.
Earlier this week I was at a meeting in my office. Our in-house mortgage broker gave us an informational sheet that specifies the basics of how banks are now looking at financing condominiums. I think that this information is equally important for both SELLERS AND BUYERS.
General Requirements:
1. 90% of the units have been sold and conveyed to buyers.
2. All units and common areas are complete.
3. Control of the Homeowner’s Association has been turned over to the unit owners (note some lenders go one step further and require the unit owners to have been in control for 1 year or more).
4. 60% of the units are owner occupied (note some lenders go one step further and require that 70% of the units be owner occupied).
5. No one entity can own more than 10% of the units.
6. Leaseholds (ground lease/recreation lease) not allowed.
7. Association cannot consist of more than 20% commercial space (note some lenders go one step further and allow no commercial space, others allow no more than 15%).
7. No more than 15% of the unit owners can be delinquent on their monthly dues.
8. There can be no pending litigation.
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