No Lend List
PLEASE READ CAREFULLY BEFORE PROCEEDING
1) This list DOES NOT mean that Perl Mortgage or other lenders cannot finance units in these buildings. We still may be able to get mortgages for units in these buildings.
2) This list is NOT all inclusive. If a condo building is not on this list, there still may be issues that could prevent financing.
3) I compiled this list from a variety of major banks and I try to updated it monthly. Some buildings may have since corrected any issues that originally caused them to be on the list.
4) This list is not intended to be the gospel. Use at your own discretion.
I created this list because many Realtors and consumers are not aware of the constant changes that are going on with the lending environment, particularly as it relates to condominiums. The list is intended to be used as an informational tool to help consumers and Realtors identify potential issues earlier in the process. Most also do not understand that banks also evaluate the health of a property just as we evaluate the credit worthiness of borrowers. In short, not only does the borrower have to qualify, the property does as well. This is especially true with condominiums. If a building is on this list, it means additional due diligence on the health of the HOA should probably be conducted by both buyer and Realtor. In addition, it is to make them aware that there COULD be potential financing issues.
This list is primarily consist of properties that fail to meet the guidelines for condominiums established by both Fannie Mae and Freddie Mac. The most common issues are as follows and any one of these can cause the property to be considered non-warrantable by both Fannie Mae and Freddie Mac. There is no way to know specifically which issues affect the buildings on this list without the HOA completing a lender condo questionnaire and/or an appraisal being completed.
- Too many units are rented
- Too many units are in foreclosure or owners delinquent in HOA dues
- One person or entity owns more than 10% of the units
- The non-residential commercial space exceeds 20%
- The HOA does not have adequate reserves
- There is pending litigation filed by or against the HOA
- The building is under insured
- The building has condotel units
- The building is new construction and the sales have been weak
- The building is still under construction and major common areas have not been completed
