Starting in December, lenders enacted new condo financing guidelines in regards to the condo questionnaires filled out by management companies.
New questions were added to the condo questionnaire that generally relate to the possibility of “deferred maintenance” to the subject building. These questions must be answered by the condo associations management company or condo boards in order for lenders to approve the condo for financing. We have been seeing pushback from several management companies’ legal teams since these questions are highly subjective and aren’t black and white. Some lenders do have possible workarounds such as meeting minutes, inspection reports, and engineering reports, but in general the new documentation needed to finance condos has been tedious to gather and confusing for all parties involved. These new condo guidelines are still temporary in nature and we are optimistic for improvement to this process in the future.
When financing a condo, it’s more important than ever to work with someone who understand the guidelines and knows what is required to get the financing approved.
Please call us with any condo questions!
