Lately, condominiums are becoming hot! They used to be priced for less than single family homes, but now-a-days there are some in the SOMA area with views that are SOLD and paid with CASH for millions of dollars.
But those folks who need mortgage need to follow stricter underwriting rules to be qualified. There are restrictions on the Loan to Value (LTV), owner occupancy of the condo project, pre-sale requirements, and extra insurance and litigations. Many condo projects sue the developer before the end of the warranty period. This creates a lending problem until the lawsuit is over and these problems are fixed. But sometimes there are smaller claims by the individuals–like slipping and falling. Those are easier to deal with and some lenders will lend on those projects.
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Don’t Forget to Attend Our MeetUP Event!
 Date: Thursday: July 10th, 2014 |
