Condo Questionnaire


Underwriters require a Condo Questionnaire to be completed by the HOA for all transactions.


  https://singlefamily.fanniemae.com/originating- underwriting/condo-co-op-and-pud-eligibility.


Key Review Areas


Below are the key areas an underwriter looks in approving a Condo HOA:


 HOA Reserves Set Aside For Future Maintenance Expenses: A reserve contribution of at least 10% on the budgeted income is needed for high LTV loans requiring “Full Review.”


 Delinquency Payments Of Homeowners: No more than 15% of the units can be delinquent on their dues for more than 60 days.


Approved Condos Lists


Some lenders may maintain a database of approved condos, which will allow for a faster approval for future loans. Also, Fannie Mae, FHA, and VA maintain a list of condos they have reviewed and approved.


 Fannie Mae list approved condos: https://singlefamily.fanniemae.com/project- eligibility-reviewservices


 FHA list of approved condos: https://entp.hud.gov/idapp/html/condlook.cfm


 VA’s list of approved Condo’s: https://lgy.va.gov/lgyhub/condo-report


 Insurance Coverage (Fidelity In Addition To General Liability): Fidelity coverage is required to be 25% or more of the budgeted income for projects with 21 or more attached units.


 Whether There Is Litigation Against The Hoa: Is there Litigation that impacts health, safety, habitability or structural issues.


 Ratio Of Renters Occupying The Units To Owner Occupants: This applies if the loan is for an investor.


 Commercial Space Square Footage Percentage: No more than 35% is allowed.


 Single Entity Ownership: In a project of 5-20 units, no more than two owned units per owner are allowed; for projects of 21 or more units, no more than 20% is allowed (up to 49% case by case).


Underwriter Approval Reviews


Condo HOA reviews fall under two formats: Limited Review and Full Review. The decision on which applies to an 


Limited Reviews


For a Limited review, the questionnaire and insurance are needed, but the budget,  liability insurance are not needed nor reviewed.


 a Limited Review:  Projects already approved by Fannie Mae: https://singlefamily.fanniemae.com/project- eligibility-review-services


 Owner Occupied transactions where the LTV (Loan to Value) is 90% or less. (75% in FL)


 Second Home transactions where the LTV is 75% or less. (70% in FL)


 Investment transactions where the LTV is 75% or less. (70% in FL)


Full Reviews


For a Full review, the questionnaire, budget, and master insurance policy are fully reviewed.


Full Condo HOA review: In general, these are the most common reasons for not obtaining condo approval when a Full Review is required is referenced above:  Litigation.  Single Entity Ownership percentage.  Non-Residential Commercial space exceeding 35%.


 Inadequate Reserves.  Excessive delinquent HOA dues


 Condo Characteristics here:  https://singlefamily.fanniemae.com/ media/5516/display


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