Can we lend on properties with outbuildings, such as barns, shops, storage sheds, etc?
That would depend on the type of outbuilding. We follow FNMA’s guidance on this topic: Type of Outbuilding Acceptability Minimal outbuildings, such as small barns or stables, that are of relatively insignificant value in relation to the total appraised value of the subject property. The appraiser must demonstrate through the use of comparable sales with […]
Can we lend in a Condop?
No.
Can we lend in a Condotel / Condo Hotel?
Yes, if the subject unit is NOT and does not have the option to participate in the hotel program. The project will be considered as ‘non-Warrantable’, whereas LTV restrictions and pricing adjustments will apply.
Can we lend on an Investment Coop unit?
No, Investment coops are not permitted. Only investment Condo units are permitted.
Do we lend in projects (Condos/Coops/PUDs) that have re-sale, age, income, down payment, or any other owner-related restrictions?
Projects with any sort of re-sale restrictions present a severely negative impact on the marketability of the unit in the event borrower defaults and this becomes an REO. It is important to identify what the restrictions are in order to determine project warrantability and eligibility: For all other re-sale or owner-related restrictions not identified above, […]