Reserves
This is the minimum percentage of a condo's annual budget that must be contributed to reserves for a project to be Fannie Mae full-review eligible.
What is 10%?
Master Insurance policies must provide for claims to be settled on this basis, not actual cash value.
What is replacement cost?
The maximum percentage of commercial space allowed in a Non-QM condo project if it is considered "typical to the marketplace" and does not negatively affect marketability.
What is less than 50?
For a Non-QM condo project to qualify, all common elements in the subject phase must be at least this percentage complete.
What is 100%?
Gross rents for all income doc types must be reduced by this percentage to reflect operating STR costs.
What is 20%?
No more than this percentage of units in a condo project may be 60+ days delinquent on HOA dues.
What is 35%?
The minimum master liability coverage required per occurrence is this amount.
What is $1,000,000?
This type of entity is prohibited from controlling the HOA in non-QM condo projects.
What is a commercial entity?
Typically, at least this percentage of units must be sold or under contract, unless LTV is <80% and FICO is >680.
What is 50%>
Non-QM condotel projects may allow this type of unit layout.
What are studios?
What is 3 years?
Borrowers must carry H0-6 insurance to cover the replacement of items such as these.
What are flooring, wall coverings, cabinets, fixtures, built-ins, and any unit improvements?
A project with commercial space may still qualify for Non-QM loans as long as this LTV or presale condition is met.
What is LTV <80% with credit score >680 allowing minimum 30% presale?
Within Non-QM condo projects, investor concentration may exceed established project limits up to this percentage.
What is 100%?
In a condotel project, at least this percentage of the units in the subject phase must be sold or under contract.
What is 50%?
If a condo project allocated less than 3% to reserves, lenders require this documentation in addition to the budget.
What is a completed condo questionnaire and a reserve study?
If the master policy does not cover unit interiors, the borrower must obtain this type of coverage.
What is an HO-6 policy or walls-in coverage?
Non-QM lenders require that the subject unit remains this type of space regardless of overall project commercial space.
What is 100% residential?
The minimum square footage required for condotel units under Non-QM guidelines is this.
What is 500 sq feet?
For Non-QM condotel projects, all units must be individually owned, and this portion of units in the subject phase must be sold or under contract.
What is 50%?
Non-QM condo projects must allocate a minimum of this percentage of the annual budget to replacement reserves.
What is 5%?
For condo projects with more than 20 units, fidelity insurance must cover at least this amount.
What is the sum of three months of assessments on all units?
Any commercial space must not dominate the project and must be this to satisfy lender guidelines.
What is typical to the marketplace and non-controlling?
If a project is partially sold or under contract, Non-QM lenders may require this type of evidence to document the sales.
What is bona fide contracts or executed sales agreements?
Units must meet minimum square footage requirements under Non-QM guidelines, which is this.
What is 500 square feet?