Qualifying for a Limited Project Review To Streamline Your Condo Purchase
Getting a loan to purchase a condo is different than getting one for a single-family home. Truthfully, condo mortgage requirements have a reputation for being a bit more strict than the requirements for single-family home mortgages.
Does this mean that you should take condos off your list? Absolutely not! At MortgageDepot, we have a way to simplify your condo purchase with fewer requirements, leading to a fast approval process. The key to this is qualifying for a limited review.
Full Review vs. Limited Review
Under Fannie Mae and Freddie Mac, there are two processes for condo approvals: Full Project Reviews and Limited Project Reviews. Here’s what you need to know about each one:
- Full Project Review: A Full Project Review requires a copy of the HOA budget, limits on investment properties within the development, and strict borrower LTV requirements, among other things. They take longer, and borrowers must strictly adhere to the requirements to maximize their chances of approval.
- Limited Project Review: This process requires less documentation than a Full Project Review, and the underwriting standards are more streamlined. And, here’s a little secret: Condos that undergo a Limited Project Review are often more likely to be approved for financing than those that go through a Full Project Review.
Our Path to a Limited Project Review
If you can get approved for your condo purchase with a Limited Project Review, it could mean the difference between scoring the condo you want or being denied at the mortgage desk. Fortunately, we have a plan! Here is our three-step process:
- Step #1: Use a higher down payment to lower the LTV on your first mortgage to 75% to qualify for a Limited Project Review.
- Step #2: Add a home equity loan or HELOC to fund your down payment and reach your 75% LTV goal.
- Step #3: Enjoy a speedy approval process with minimal HOA documentation required!
Contact MortgageDepot Today!
If you have your eyes on a condo but are concerned about financing, we can help. Contact us today to learn about hassle-free ways to fund your next condo purchase!
Connect with one of our loan consultants to learn more.