SmartCondo is a loan type designed to make buying a condo more flexible, whether it's a home, a getaway or an investment.
When a standard mortgage doesn't fit your needs or present situation, our SMART Series loans are here for you. These are loans outside the Qualified Mortgage parameters, giving you the options and flexibility to make your chosen financial moves, including buying a new condominium. Getting a standard loan to purchase a condo may come with a surprising amount of inflexible options, potentially making you rethink your purchase. If you turn to SmartCondo, however, you'll discover how easy and flexible the process can really be.
Features of SmartCondo
There are a selection of condo features that are non-warrantable, keeping properties from being eligible for standard loans. When you take out a SmartCondo loan, your new space can have up to two such features, taken from a list including qualifying up to 50 percent of a unit, or single-entity ownership of up to 49 percent.
SmartCondo loans are available in amounts up to $2.5 million for condos with 45 percent debt-to-income ratios. They are suitable for buying a condo as your primary residence, using the condo as a second home or purchasing units to operate as investment properties and sources of income. These loans are for highly qualified borrowers looking for the kind of coverage only available with tailored and specific loans. In addition to buying property, you can also use a SmartCondo loan to refinance.
When buying a condo as an investment property using a SmartCondo loan, only 30 percent of the units have to be sold or under contract to first- or second-home owners. That's considerably down from the 50 percent required by standard loans for buying condos. Furthermore, a maximum of 25 percent of the units are allowed to be more than 60 days delinquent on their homeowners' association dues, as opposed to 15 percent with standard warrantable loans.
If it's the right time for you to buy a condo, whether to live in or use as an investment, you have more options now than ever before. While agency-backed loans disqualify a number of properties, SmartCondo is far more flexible, all the while still embracing responsible practices.
Ask if it's right for you
Not every condo purchase is the same, which means you should start working with our representatives to determine whether SmartCondo works for your situation. There are more complex regulations around new construction in Florida, for instance, SmartCondo loans for investor properties aren't permitted for newly built units in the Sunshine State.
While some recreational leases - for amenities such as non-optional club memberships - aren't allowed under SmartCondo, other kinds are. For example, you can secure recreational leases for facilities only accessible to unit residents or HOA members, including clubhouses, pools and other physical amenities.
The rest of the SMART series may also hold interesting options for your current or future financial needs. SmartVest is aimed at experienced real estate buyers seeking to manage multiple properties for investment purposes. SmartSelf suits the needs of the self-employed, SmartFunds is for those whose wealth is in assets instead of income, SmartEdge is a Jumbo loan with non-agency features and SmartTrac is for those who have suffered a financial incident.
Speak with us today about your condo and financial future.
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