Yesterday’s blog outlined potential concerns when financing a Condo.
There is a tactic to skirt the concentration issue, when one party or entity owns more than 10% of the units.
A strong borrower who puts at least 20% down can garner a “Limited Review” Approval with a select number of our lenders. This type of review no longer necessitates an “HOA Cert,” a document that immediately brings potential issues to light. The concentration rule will therefore not trigger any issues as long as the Appraiser makes no reference of them.
To keep the appraiser from making mention of the issue, the MLS, the Contract and the Realtors must make NO mention of any of them.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646