Monday, March 14, 2011 - Article by: Don Maher - Universal Capital Mortgage Corp -
As of today, there are now loan programs for non warrantable condo coplexes with the following issues:
1. HOA Litigation - Any Type
2. High HOA Default Ratio ( in excess of 15%)
Many condo complexes are in good financial shape, but due to the number of units, or HOA litigation, may be non warratnable.
1. An HOA may be suing a painting contractor for unfinished work. Even though that has no effect on the financial strength of the HOA, it still makes the building non warrantable.
2. A 6 unit building has 1 unit behind on the HOA dues. Even though it does not present a major problem to the HOA financial stability, it is still more than 15% of the total unit count, so it is technically non warrantable.
Adding to the above, the following are also acceptable issues for financing:
1. Mixed use complexes
2. Complexes where one entity owns more than 10% of entire project
3. New developments
4. High rise developments
5. Non Owner Occupied Cash Out
Log on to www.NonWarrantableCondoLoans.net for more information.
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