Warrantable Condo Loans

Condos attract various buyers, from retirees to young couples, although it can be somewhat difficult to obtain a mortgage on a condominium. Henderson mortgage lenders took some of their biggest hits on condominium mortgages during the housing crisis. Condo loans are considered riskier than home loans, yet this is not always a reflection on the borrowers. Lenders need to assess the financial stability of the entire building, rather than just that of the individual seeking a condo loan. At All American Home Mortgage, we understand the various challenges Henderson residents face when looking for a condominium loan. As a local Henderson mortgage company, we are able to work closely with our clients to make condo ownership possible.

Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) have a number of requirements that a condo association must meet. It is often advised to look for a building that is already approved by these entities to obtain the best possible rates and fees.

Henderson Condo Loan Requirements

  • At least 51% of the units must be owner-occupied.
  • No more than 10% of the units can be owned by a single investor.
  • 10% or more of association dues are deposited in reserves.
  • Less than 15% of owners are delinquent on association dues.
  • No more than 25% of the building’s square footage is commercial space.
  • The property is adequately insured.
  • No current or pending litigation against the HOA.

These requirements, while they may seem rather strict, are designed to protect both lenders and borrowers. Fewer financing options are available for condos not approved by Fannie Mae, Freddie Mac, or the FHA. Conventional financing options are a common alternative although they may require slightly higher down payments, costs, and interest rates. Condo loans backed by the FHA, or eligible for purchase by Fannie Mae and Freddie Mac, will have similar requirements to a typical home loan. Borrowers will need to meet certain credit, debt-to-income, and down payment requirements depending on the type of loan they are seeking.

At All American Home Mortgage, we offer condo loans a variety of properties throughout Henderson and the surrounding Nevada areas. This includes:

  • Las Vegas Condo Financing
  • Palms Palace Condo Financing
  • Trump Condo Financing
  • Turnberry Condo Financing
  • Las Vegas High Rise Condo Financing
  • And more!

All American Home Mortgage, your premiere Henderson mortgage lender, can help you determine the condo loan that is best for your unique needs. For more information on Henderson condo loans or to begin the application process, contact one of our experienced staff today!