TEXAS CONDOMINIUM MORTGAGE LENDERS
TEXAS MORTGAGE LENDERS OPTIONS
- TEXAS Condo Lenders Minimum Credit Score = Minimum Credit Score 500
- 3.5% CONDO MORTGAGE down payment for Condo Approved TEXAS Condo Mortgage Loans.
- 100% financing for VA Approved TEXAS Condo Mortgage Loans.
- 3% down payment for Fannie Mae Approved TEXAS Condo Loans.
- 5% down payment TEXAS Condo Mortgage For Owner Occupied.
- 10% down payment for Second TEXAS Condo Mortgage.
- 20% down payment for Investment TEXAS Condo Mortgage Loans.
- 20% down for Jumbo TEXAS Condo Mortgage Loans.
- 20% down Non or Un Warrant-able Condo Lenders
TEXAS 10% DOWN NO CONDO QUESTIONNAIRE
Texas Condo Mortgage Lenders Product Parameters
Appraisal One full appraisal is required. The appraisal used for the first lien will also be used for the second lien.
If the first lien does not require a full appraisal then a full appraisal must be ordered for the second
Cash-out refinances of properties owned < 12 months use the lesser of the purchase price or the
appraised value to determine LTV.
Transferred appraisals are not allowed.
Underwriting Method All loans must be processed through Desktop Underwriter (DU) and receive an Approve/Eligible finding.
The underwriter will utilize the DU findings from the first lien which will include the CLTV and terms of
the second lien. The more restrictive of the DU findings and the Second Lien Program Guidelines
Credit Trade Lines – Each borrower must have:
3 open and active trade lines:
o 1 trade line reported for a minimum of 24 months
o All trade lines must have activity within the last 12 months
o At least one trade line must have a minimum $2,500 high credit limit
Borrowers failing to meet the 3 trade line criteria but have a minimum of 1 open and active trade
line with 12 months or more reporting are eligible if the following requirements are met:
o 8 or more trade lines reported
o 7 years of established credit history
Housing Payment History:
0x30 mortgage/rental delinquency in the past 24 months.
o This applies to all mortgages and all borrowers on the loan.
o Mortgages must be rated up to and including the month of the new loan closing.
Borrowers must have a fully documented, recent, consecutive, 24 month primary housing history.
Refer to the Program Guidelines for additional requirements.
Down Payment / Gifts /
Borrower’s own funds are required for down payment and reserves. A minimum of 5% of borrower’s
own funds is required.
Eligible Borrowers U.S. citizens
Permanent resident aliens
Inter Vivos Revocable Trusts
First-time homebuyers (primary residences only)
Eligible First Liens The second lien must close simultaneously with a concurrent conventional Fannie Mae eligible Plaza
Ineligible First Liens:
Any first lien that is not Fannie Mae eligible (first lien must receive DU Approve/Eligible findings.
Fannie Mae home ready
Fannie Mae HomeStyle
Fannie Mae DU Refi Plus Retained
Eligible Properties Attached/detached SFRs
Condos (Fannie Mae Warrantable)
Geographic Restrictions Hawaii: Properties in Lava Flow Zones 1, 2 or 3 are not allowed.Texas: Cash out refinance transactions are not eligible.
Income & Employment Per DU
Mortgage Insurance Not required.
Reserves Reserves must come from the borrower’s own funds. Reserves must be adequate to cover the first and
second lien PITIA.
CLTV <= 90%: 3 Months PITIA
CLTV > 90%: 6 Months PITIA
Transactions Purchase, Rate/Term Refinance and Cash-Out Refinance
If any first or second lien proceeds are used for debt consolidation, debt payoff or cash-out then the
second lien transaction will be treated as cash-out.
Cash-out > 80%: CLTV is only eligible when the first lien is a rate/term refinance and any cash-out
is obtained from the second lien.
CLTV <= 90%: Minimum 6 months ownership seasoning is required.
CLTV > 90%: Minimum 12 months ownership seasoning is required.
Properties owned < 12 months use the lesser of the purchase price or the appraised value to
determine the CLTV.
TEXAS CONDO LENDERS PROVIDE:
- Loan Closings in as little as 21 to 30 days.
- We offer same day free same day pre-approvals!
- 48 hour underwriting.
- We follow Fannie Mae underwriting guidelines and don’t add additional loan requirements like many orida banks do!
- We see out necessary information to determine if the TEXAS Condo mortgage will qualify for financing up front within 1 to 5 days so you don’t waste money on a TEXAS Condo inspection and appraisal if it doesn’t qualify.
- Many years combined experience working with national TEXAS Condo mortgage lenders.
- We work for you and only get paid when we’re successful condo mortgage closes! In most cases, our fees are paid by the TEXAS Condo mortgage lender so clients have no out of pocket expenses for loan origination costs.
- We don’t just offer the normal TEXAS Condo mortgage loan programs like most banks do, We offer ALL TEXAS Condo mortgage loan programs available and we offer them without the additional underwriting requirements and loan limitations that other TEXAS mortgage lenders may have.
- We’re your direct access to many nationwide wholesale TEXAS Condo mortgage Lenders.
TEXAS CONDOS GET TURNED DOWN BECAUSE:
- Won’t accept the master condo Insurance policy.
- Require 20% down payment.
- Require at least 51% be owner-occupied & second homes.
- Is listed on their not lend list.
- It’s a Non-Warrantable condo or a Condotel.
- If you have the TEXAS Condo association budget and the condo questionnaire already completed please email it to us for approval.
TEXAS CONDO LENDERS DOWN PAYMENT REQUIREMENTS
TEXAS Condo mortgage applicants will find that a mortgage loan approvals on a TEXAS Condo is more complex than purchasing a single family house, townhouse or villa. With TEXAS CondoTEXAS Condos there are additional requirements for these TEXAS mortgage transactions. The TEXAS Condo association must be approved via condo association questionnaire before you can secure TEXAS Condo mortgage approval.
If the condo is on the Condo Approved List you can purchase the condominium as a primary residence with a 3.5% down-payment.
|FANNIE MAE CONDO DOWN PAYMENT|
|Primary Condo Residences Down payment:||5%|
|Second Condo Homes Down payment:||10%|
|Investment Condo Property Down payment:||10%|
For Fannie Mae not Approved TEXAS Condos purchases, typically the minimum down payment is 25%.
We encourage that you put more money down so that we can waive the project approval requirements.
|LIMITED REVIEW CONDO DOWN PAYMENT|
|Primary Condo Residences Down payment:||25%|
|Second Condo Homes Down payment:||30%|
|Condo Questionnaire:||Not Required|
|Budget Review:||Not Required|
CONDO REVIEW PROCESS
A TEXAS Condo Limited Review Lender process used by TEXAS Condo mortgage lenders on properties for TEXAS Condo Approvals. A full review can take time and can be costly and if the TEXAS Condo mortgage underwriter finds any flaws in the condo association’s financials and or if there are litigation issues, the TEXAS Condo mortgage loan applicant may get their condo mortgage loan application denied. Getting a TEXAS Condo mortgage on a TEXAS Condo with a limited review is the way to go for projects not approved by Fannie Mae.
Texas Condo Project Questionnaire
Fnma has developed standardized Texas Condo Project Questionnaire forms (1076/1077). Although optional, these forms are encouraged as they provide lenders a clear and consistent approach to collecting information from HOAs regarding condo projects.