So You Want to Buy or List a Condo...Will Financing Be Available?

Yesterday I received a call from an agent wanting to set up appointments on my coop units and one of my condo listings. She was not aware that this coop can only be purchased as a cash transaction..no mortgage of any kind.  Then she asked about VA financing because her mortgage person said.."There would be no problem.."

I suggested she give Mortgage Mama a call....

Via Bridget "Mortgage Mama" McGee (Allied Home Mortgage Capital Corp 410-960-2061):

I got a call yesterday from a realtor (referred to me by Margaret Rome, THANKS MARGARET) who has a client interested in condo living.  There are some fabulous condos on the market, the prices are right, the amenities are fabulous.  For cash buyers, condo living may be a no brainer, but for many the question will be "Will financing be available?"

To determine if the condo is currently approved for FHA financing, click here.
To determine if the condo is currently approved for VA financing, click here.   It can take 8-12 weeks for the VA legal department to approve a condo.  Documents including budget and condo docs will be required for review.

The condo association may already be approved for conventional financing by specific investors, your loan officer should be able to determine.  If not, the investor will need at least the following information from any condo association you are considering (if they are not already approved):

1. 2011 budget
2. Condo Master Insurance Policy
3. Signed and Dated Condo Questionnaire

There may or may not be a fee required by the condo associated for gathering the documentation.
Most lenders will  probably not approve financing if:

• it is less than 51% owner occupied
• the association is involved in any litigation
• there is over a 15% delinquency rate on dues
• the condo is over 20% commercial
• one entity owns 10% of the condos

Don't be discouraged if a condo listed for sale is not yet approved for available financing, with some skill, diligence and proper documentation, we can help you to navigate the approval process for condos in Maryland so when someone asks "Will financing be available?"  You can answer "YES" with confidence!

UPDATE:  Local lenders may have portfolio (in house) financing programs that National lenders do not.  The guidelines are determined by their management team, and not subject to Fannie Mae, Freddie Mac or governmental rules. I have spoken to a local lender who has an Adjustable Rate Mortgage (ARM) program that may be a good option for some condominium buyers.  We will continue to research financing options to ensure the best fit for the client.   If we don't offer a program that works for a buyer or their home of choice, someone else does (as long as we are aware of the option) we will happily refer the buyer to that lender.

Warm Regards,
Bridget McGee  Maryland Mortgage Mama   Allied Home Mortgage Capital Corp #1448  410-960-2061 EHO

What documentation do I need to get a pre-approval?

This is the kind of information that we need for buyers. Thanks to Bridget for making it available. I met Bridget through ActiveRain when she came to the very first  ActiveRain Open House.

You can see how  Bidget McGee who we call  Mortgage Mama  and  I worked together to get a difficult transaction to the settlement table.

Via Bridget "Mortgage Mama" McGee (Allied Home Mortgage Capital Corp 410-960-2061):

When a potential client calls me one of the questions they will ask is "What documentation do I need to get a pre-approval?"

Stated income loans are a thing of the past.  Getting a mortgage is a big deal. Lenders are requiring more and more documentation to prove your credit worthiness. In order to ensure that I am giving the most accurate pre-approval letter I will require the following:

1.   Mortgage Credit Report-I will need your full name current address, social security number and birthdate.   I will pull this through my credit agency unless you have a copy of one that has been pulled in the last 15 days through a mortgage company.  Consumer credit reports, auto dealer reports, etc. use different calculations to determine your score.  Although these reports will give us a ballpark as to where your score stands, it won't be used for the pre-approval.

2.  2 most recent consecutive pay stubs.-for both income and deductions (some may need to be included into your debt ratio)

3.  2 years w-2's -to show consistency of income

4.  2 years tax returns-If self-employed or you have any non-reimbursed business expenses.  If a VA loan, tax payments are taken into consideration for income calculation.

5.  Most recent two months bank statements/401K/investment, all pages  I am not only looking for the total of the assets you have available but for:
a.) overdrafts, non-sufficient funds charges
b.) large unverified deposits
c.) transfers to or from a different account 
d.) child support payments
e.)  Regular payments by check or transfer that may mean another debt that must be included in your numbers.

6.  If you are getting a gift for closing, I will probably have questions about the donor.

7.  Divorce Decrees, Bankruptcy paperwork may be required in certain circumstances.
Additional documentation will be required prior to submitting the loan for underwriter approval, and even more may be required by the underwriter upon review.  We will work together to make this process as smooth as possible, but be aware that you may be asked to hand over your first born.  Banks are getting more and more strict with lending guidelines so don't be surprised at the answer when you ask: What documentation do I need to get a pre-approval?

Warm Regards,
Bridget McGee  Maryland Mortgage Mama   Allied Home Mortgage Capital Corp #1448  410-960-2061 EHO

Lovely Pikesville Rancher...

When you are lucky to know   Mortgage Mama it means success for everyone!

Not only is Bridget McGee a wonderful and knowledgeable lender, she really cares about the buyers and goes the extra distance. This is the kind of unexpected thing Bridget does and I find out about it in a blog.  Just look how Bridget highlights this special listing of mine!

Because of ActiveRain, I met a fabulous lender who can get a challenging transaction to the table! In addition she has become a friend.

Thank you Dr. Stacey for the introduction. Thank you Bridget.

Via Bridget "Mortgage Mama" McGee (Allied Home Mortgage Capital Corp 410-960-2061):

	7901 Winterset Avenue Pikesville, MD 21208 Sprawling Brick Rancher with Curb Appeal
Home Photo Gallery Virtual Tour Property Map Payment Info Request Showing Contact Me Margaret Rome Office: 410-530-2400 Website: Visit Website	Price : $424,944 Bedrooms : 4 Bathrooms : 3.5 Square Foot : 2,588 Lot Size : 20,908 Community : Pikesville/Stevenson County : Baltimore Property Type : Detached Year Built : 1960 MLS Number : BC7353718 click for more information and pictures Property Description Here is an All Brick Rancher with beautiful curb appeal! Enter through double doors into a slate foyer and wonderfully large parquet floored living area. This is a mid-century well built long low sprawling rancher. Enjoy this four, five or more Bedroom 3 1/2 bath one floor living in the Stevenson Area just inside the Baltimore beltway. Spacious white eat in tiled kitchen with planning desk, etched glass door pantry and large center cooking island. Entertain large groups in comfort in your spacious dining room with cathedral ceilings and bright windows. The previous carport area, adjacent to the kitchen, is now a two room guest suite with a full bath! This could also be an ideal home office with a separate front and rear entrance and plenty of parking in the long driveway. You will love the first floor family room with parquet floors, built in storage, wood burning fireplace and sliders to a private screened porch and patio. Master bedroom suite on the FIRST floor has two very large closets, sometimes called hers and hers. Three additional bedrooms and another full bath also on the main level make a wonderful forever home. Easy care wood parquet floors throughout. Cathedral ceilings and large replacement windows overlook the private, lush landscaped half acre plus, corner lot. Another bonus in this Stevenson rancher is that it has a finished lower level with an 18 foot x 18 foot carpeted recreation room, huge storage and laundry area, a half bath and walk up stairs. Gas heat, central air, of course, and handicapped accessible, this home could be just what you've been waiting for. Features List 4-6 Bedrooms 3 1/2 Baths Gourmet Kitchen Eat-in-Kitchen Breakfast Room Family Room Carpeting Ceramic Tile Hardwood Floors Wood Fireplace Finished Basement Natural Gas Heating Catherdral Ceilings In-Law Suite/Office Built in Storage Open Floor Plan Corner Lot Screened in Porch Laundry Room Foyer Entrance
Equal Housing Opportunity.	Home Rome Realty : Baltimore MD : 410-530-2400

Warm Regards,
Bridget McGee  Maryland Mortgage Mama   Allied Home Mortgage Capital Corp #1448  410-960-2061 EHO