Capture More Condo Buying Clients
There are a lot of reasons why home buyers love condos. As you know, much of the maintenance responsibilities will be handled by a condo association, and condos often offer access to upscale amenities like pools and on-site fitness facilities. Plus, many condos are located in desirable downtown areas that are ideal for first-time home buyers. In addition, condos are often priced lower than single family homes.
As a mortgage broker, however, you may be aware that the condo financing process has unique qualifying hurdles that have nothing to do with a client’s personal finances or credit score. Condo complexes must meet certain guidelines aimed squarely at how the project is managed. If they don’t meet these guidelines, they won’t qualify for financing via Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs. We understand that nothing is more frustrating than a deal falling through because the condo complex doesn’t meet these condo-specific guidelines – something that’s very much out of the control of the client.
To reduce these condo closing issues, QLMS is proud to present an exclusive offering that helps you deal with any hurdle. We’re removing some of the biggest challenges your clients face around the approval process for a new construction condo. In turn, this can make it significantly easier for your clients to get to the closing table. Let’s walk you through the more flexible guidelines offered (especially compared to other lenders’ guidelines) and the massive purchasing power it affords your clients. We call it CondoMAXimum1 and it’s changing the new construction financing game. It will impress builders, amaze real estate agents and wow your clients.
More Financing FlexibilityIn order to finance new construction condos, most lenders and banks require that the following guidelines are met:
- 50% of the units in the phase must be sold to owner-occupied purchasers.
- The entire condo phase must be complete.
- 25% of the units in the phase are under contract to sell to owner-occupied purchasers.
- Only the building the client’s unit is in needs be complete rather than the entire legal phase.
Greater Range Of Loan Products AvailableNot only are there more flexible guidelines in place, but these loans are eligible for conventional financing as well. Share these impressive advantages with builders, agents and your clients:
- Your clients won’t pay a higher interest rate in order to get into a new construction condo.
- Fixed-rate options are available, including the popular 30-year fixed mortgage with a down payment as low as 3%.
- There is no non-warrantable pricing adjustment.
What Else Your Clients Need To KnowAs a QLMS partner, you can also save your clients time and money when you take advantage of our Condo Approval Database. It can eliminate 2 weeks from the condo financing process. And because your clients won’t have to submit a condo questionnaire, you can save them an average of $450.
New condo construction will continue to boom this year and beyond, so we’re making sure our partners give their condo buying clients more savings, flexibility and convenience. Use these resources and see how your clients will thank you for your condo buying expertise.
DISCLAIMER: 1 CondoMAXimum is available on eligible refinance or purchase conventional and jumbo loans on primary, secondary and investment properties. Must have a minimum of 25% for conventional and 50% for jumbo of presold units by builder of legal phase (development of a single property divided into separate units), any prior phases and must pass additional condo project review requirements. The subject building that the unit is in must be complete as evidence by a certificate of occupancy. Must meet minimum FICO and loan-to-value ratio (LTV) requirements. Not available in Florida. This is not a commitment to lend. Additional restrictions and conditions may apply. Not all condo projects are included. Please contact your QLMS AE for additional information.