Condo Loans
Buying a condominium (condo) is a unique situation, because while the owner of the condo has full ownership of the interior of their unit (just like they would any other home), a condo association owns the common areas. It’s important to work with a mortgage lender that will not only provide top-notch financing, but also has the expertise to take you through the process step-by-step.
what are the benefits of owning a condo?
More and more people are deciding that owning a condo, rather than a single-family home, is a better fit for their specific needs and lifestyle. Owning a condo comes with many perks, like:
- Less maintenance – In many cases, lawn care and other types of outdoor maintenance are covered in your condo fees
- Smaller size – Condos can be ideal living situations for singles, empty nesters, and small families who don’t need or want to maintain a large home
condo loan details
Waterstone Mortgage’s condo loan program offers flexible financing options to help you achieve your condo homeownership dreams.
flexible down payment options
- Primary residences — No down payment on loans up to $1,089,300
- Second homes — As low as 10% down on loans up to $975,000*
additional program features
- Loan amounts up to $2 million for primary and second homes (up to $1.5 million for investment properties)
- Allows condotels and non-warrantable condos — all occupancies
- Asset Qualifier option available — no employment or income needed to qualify
- Foreclosure, bankruptcy, or short sale event allowed after a 2-year waiting period
- Interest-only option available
- Financing available for purchases and refinances (including cash-out refinances)
how do i get a condo loan?
The biggest difference between buying a condo and a traditional home is the mortgage review process. Legal documents, financial documents, and other aspects of the project will be reviewed to be certain they not only meet with the lender's criteria but that you, the homeowner, are protected.
A lender will look at several factors when determining whether a condo association is financially healthy enough for the loan to be approved, such as:
- If all planned amenities for the complex are completed
- Percentage of condominium units that are owned by one entity
- Percentage of owners that are delinquent on their monthly dues
- The amount of money in budget reserves and whether the condo association has sufficient insurance
- Whether the condo association faces any pending litigation
Only warrantable condos available at a 10% down payment. Additional restrictions apply for properties located in Florida and certain counties in Illinois — ask for details.;
All loan requests are subject to credit approval as well as specific loan program requirements and guidelines. With adjustable-rate mortgages (ARM), the interest rate is variable and may increase or decrease after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment. Geographical variations may apply. Specific information about loan adjustment period available at application.
