Property eligibility
Condo Mortgage and Project Review
A condo mortgage evaluates two connected risks: the borrower's ability to repay and the condominium project's financial, insurance, legal, and physical condition.
Direct answer
Why Is Condo Financing Different?
Because each owner shares responsibility for common property, lenders may review the association budget, reserves, insurance, litigation, special assessments, owner occupancy, commercial space, and other project characteristics. The exact review depends on the loan program and transaction.
Early review matters. Ask for association documents and identify special assessments before assuming the project will fit a particular mortgage path.
Documents that may matter
- Condominium questionnaire or project information
- Master insurance policy and applicable deductibles
- Current budget, reserves, and financial statements
- Recorded declarations, bylaws, and association rules
- Details of litigation, structural work, inspections, or special assessments
Borrower review vs. project review
| Review | Focus | Examples |
|---|---|---|
| Borrower | Ability and willingness to repay | Income, assets, credit, debts, occupancy |
| Condo project | Collateral and shared project risk | Insurance, budget, reserves, assessments, litigation |