Salvador Cortez at Absolute Mortgage Group Inc.
Salvador Cortez
Absolute Mortgage Group Inc.
Phone: (916) 668-0043
Email: [email protected]
NMLS# 1813194
Company NMLS# 1874315
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A condo refi is similar to refinancing any other home. The lender will look at your income, assets, and credit to ascertain your qualification. Plus, the condo will also be appraised to determine the property value.
However, since there are more variables when refinancing a condo, such as shared amenities, lenders usually conduct a condo review.
It's worth noting that not every condo will require a review. A conventional loan refi of a detached condo typically won't need one since they're considered a single-family residence. The same goes for condo projects with four units or less.
Otherwise, it's safe to assume that you will need a review to refi your condo. Here's what that might look like.
To refi into a government-backed loan, the condo property typically must be on the approval list. FHA, VA, and USDA each have their own lists. If your condo isn't listed, you have a couple of options. The easiest option is to apply for a conventional loan instead.
The other option is to work with your lender and HOA to get your condo on the list. This option isn't necessarily easy, but it may be worth exploring.
Condo approvals for a conventional loan work a little bit differently. Remember, getting a refi depends on both your qualifications as the borrower and the property's qualifications. Here are the types of reviews used to qualify a condo for a refi.
A limited review needs less documentation than a full review. Requirements can vary by state, but generally speaking, you'll need:
At least 10% equity for a primary residence condo.
At least 25% equity for secondary and investment property condo.
Insurance coverage – Enough insurance to cover shared amenities, including hazard insurance.
Meets limits as to how many units are under the control of a single entity --For example, if a condo project has between 5 – 20 units, the max is two units owned by a single entity.
If you don't have enough equity or if a limited review isn't offered for your desired loan type, then you'll want to proceed with a full review.
In a full review, you'll need to submit everything from a limited review, plus:
Master insurance policy covering common areas, including at least $1 million in liability coverage per occurrence.
If the condo project has more than 20 units, bond coverage in case HOA funds are mismanaged.
A review of the HOA budget.
Refinancing your condo has a specific set of regulations, but they all start the same way --applying! Get started with an online application today, and we'll guide you through the rest of the details.
We've been helping customers afford the home of their dreams for many years and we love what we do... Company NMLS: 1874315 Personal NMLS: 1813194 NMLS Consumer Access
1942 Del Paso Road, Suite 130 Rm 103 Sacramento, CA 95834 Phone: (916) 668-0043 [email protected]
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