The unit is only part of the collateral
Ownership includes an interest in shared property and obligations. Lenders may review the association and project because financial or structural problems can affect every unit.
Begin project review early
Ask for association documents promptly and identify the project before relying on a closing timeline.
- Master insurance and applicable flood coverage
- Budget, reserves and delinquency information
- Pending litigation or special assessments
- Owner occupancy and ownership concentration
- Structural or safety-related reports when applicable
Do not confuse financing review with due diligence
A lender eligibility decision is not a recommendation to buy. Buyers should review association obligations and obtain appropriate real-estate, legal, insurance and inspection advice.
Frequently asked questions
Can a strong borrower finance any condo?
No. The project and unit must also meet the applicable loan requirements.
Do special assessments always prevent financing?
No, but the purpose, amount, status and project condition may require analysis.
Claims in this guide were checked against the linked primary sources. Program guidelines can change; personal eligibility requires a complete application and review.