So as an update…for our condo loans, we have lowered the down payment requirements!
To that end, there’s a laundry list of details to be obtained about the property, the association, and the subdivision itself; and there is nothing proprietary about any of it. The information needed is clear and pretty easily acquired. We need only look to the condo questionnaire for things like:
•What is the delinquency rate on HOA fees by the existing owners?
What we as a company have decided to do is absorb some of this risk to get these units moving. The condo market is a huge one for those who snowbird and/or seek a low maintenance lifestyle. We believe it needs a little support. So we are accomplishing this by reducing the down payment requirements pretty much across the board.
Again, you’d think this should be the norm; but when I see these low percentages of condos that are getting closed, it’s not always the reluctant lenders that are causing problems in this market, a lot of times it’s the slackers. Hate to say it, but it’s true.
At the end of the day, when you do your job, you don’t get stranded on the Island of Misfit Toys.
The definition for a condominium according to MortgageCurrentcy.com is: ‘A form of ownership where units are owned by individuals but the land and common areas are owned jointly with all owners.’ Sounds deceptively simple, doesn’t it?