Monday, May 13, 2013

Is it possible to finance a condo with less than 20% down payment?

We offer 95% financing on warrantable condominiums.  What does this mean? If the property being financed is for the borrower to occupy as their primary residence, if they have 5% down payment and some money for closing costs, if they have a minimum credit score of 680, they may be eligible to buy a condo with this program. 
The condo project must be approved, as well as the buyer.  The meaning of warrantable means that the condo association must meet the requirement set by Fannie Mae and Freddie Mac for condos.  There can't be more than 9% of the development owned by one person or entity.  There can be no more than 15% delinquent property owners.  If the condo is being purchased as an investment property, 51% of the units must be owner occupied.  These are most of the major guidelines, but there are more specific requirements ( see attached ) and unique circumstances that may need to be explored before entering into an agreement to buy a condominium. 

Andy Williams
Abacus Regional Mortgage
484 695 5972
NMLS # 118317