Financing a Condo – Less is More

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Financing a condo is different from financing a single family home.  Why you ask?  It is due to Arizona Mortgage Lender’s requiring the entire condo project be eligible for home loan financing.

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Condo Home Loan Differences

Just how complex is getting a condo home loan?   The answer depends upon a myriad of factors.   However, condensed down to a simple answer we are left with 2 vastly different levels of difficulty.   Regarding condo home loans, the levels of difficulty depends on which condo approval process is used.  The 2 condo approval processes are:

  1. Limited Condo Review
  2. Full Condo Review

As you may have guessed, Limited Reviews are simpler than Full Reviews.  Limited Reviews do not require the level of information that a Full Review does.  So who chooses which Review type is required?  The answer is simple – Conventional loan regulations.

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Condo Approval – Limited Review Eligibility

Home loans meeting specific Loan to Value (or “LTV”) limits can use the Limited Review process.  LTV refers to how much a buyer borrows compared to the value or price of the condo.  For example, when a borrower buys a condo for $300,000 and they borrow $240,000, their LTV is 80% ($240,000 is 80% of $300,000).  LTV limits for Limited Condo Reviews  are:

By Jeremy House



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