Non Warrantable Condo Program

Non Warrantable Condo Program

Non Warrantable Condo Program

Non Warrantable Condo Program mortgages on 15 & 30-Year Fixed Rate and 5/1 & 7/1 ARM for loan amounts from $100,000 to $2,500,000 with the following features:

• Full Doc to 50% DTI  – for wage earners and self-employed borrowers
• Bank Statement Documentation - for self-employed borrowers: 24 month personal bank statement, 12 month personal bank statement, 24 month business bank statement
• LTVs to 90%
  
• Non-warrantable condos
• Credit Scores to 660
• Reserves to 3 months
• Loan amounts $100,000 - $2,500,000
• 5/1, 7/1 ARM, 15 & 30-year Fixed Rate
• Primary residence and second home
• Purchase, rate/term and cash-out
  

Non-Warrantable Condominiums:

• Features cannot be combined – only one non-warrantable aspect allowed
• All non-warrantable condos must be approved by Plaza’s Project Standards Department
• The subject legal phase and any other prior legal phases in which units have been offered for sale must be substantially complete (common elements must be complete and units must be complete other than selection of buyer upgrades/preference items)
• The developer must be responsible for assessments on unsold units built but not closed
• Except as outlined below must meet FNMA requirements
• Budget: Line item replacement reserves of 8% or higher.
• Commercial Space: Commercial space includes space above and below grade. Commercial space must be compatible with the residential use of the project. For example, restaurants, small shops, business offices, small market/grocery store that complement the neighborhood.
• Maximum 30% commercial space.
• Commercial entity cannot control the HOA.
• Delinquent Assessments: No more than 15% of units may be 60 days or more delinquent on assessments.
• Investor Concentration: <= 50% investor concentration allowed.
• Litigation: Projects involved in litigation are acceptable as long as the pending lawsuit(s) are not structural in nature, do not affect the marketability of the units and:
• Potential damages do not exceed 25% of the HOA reserves, OR
• Documentation must be provided by the insurance carrier or the attorney representing the insurance carrier that the insurance carrier has agreed to provide the defense and the association’s insurance policy is sufficient to cover the litigation
• Presale: New projects or converted projects (as defined by Fannie Mae) must have at least 50% of the units sold or under contract to owner occupants or second home purchasers for the subject phase.
• Single Entity Ownership: Maximum ownership by one (1) entity is 20% for projects with more than ten (10) units.
• Units owned by the developer, sponsor, or succeeding developer that are vacant and being actively marketed for sale are not included in the calculation.
• Units currently leased must be included in the calculation.
• For projects with ten (10) units or less, maximum ownership by a single entity is 2 units.
  

What documentation will I need?

www.Mortgage-World.com

Apply Now!

Florida Call 305.748.3007

New Jersey Call 201.693.8521 

We recognize the importance to you of keeping your information secure and confidential. We will not sell or share your personal information.

We look forward to working with you.

We look forward to working with you.