In this episode of Daily Mortgage Rates LIVE, we focus on Limited-Review Condo Loans, a specialized financing option designed for buyers looking to purchase condos without going through the full, often complex, condo project review process. Limited-Review Condo Loans streamline the approval process, making it faster and easier for qualified borrowers to secure financing, especially in established, low-risk condo communities.
We’ll cover the eligibility requirements, including how loan-to-value (LTV) ratios and occupancy status influence approval, and highlight the advantages of limited reviews compared to full project reviews. You’ll also learn about potential restrictions and important factors to consider when guiding your clients through this loan option.
Whether you're a loan officer working in a high-demand condo market or simply looking to expand your knowledge, this episode will equip you with the insights and tips needed to confidently navigate Limited-Review Condo Loans and help your clients close deals more efficiently. Tune in for a closer look!
For more episodes visit: https://themortgagecalculator.com/Page/Daily-Mortgage-Rates-LIVE-Video-Podcast
About The Mortgage Calculator:
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of over 350 licensed Mortgage Loan Originat
The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!
Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!
Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages
Episode Transcript
All right.
So welcome everyone.
My name is Kyle Hiersche.
I'm the COO of the MortgageCalculator joined here by our
CSO, Jose Gonzalez.
We are a lender that specializesin non QM loans and what we do
every weekday at 11 a.
m.
Eastern on the shows, go throughour.
Actual live rates.
And then we do a deep dive intoa different topic.
So Jose, uh, will have a topicfor us here today of limited
(00:27):
review condos.
So we will go through that hereshortly, but first we're going
to go ahead and excuse me, we'regoing to go ahead and pull up
today's rates.
So let me go ahead and.
share my screen here and we willget into it.
All right.
(00:52):
Okay, so you'll see here we'llstart with the 30 year fix
conventional.
Obviously the loan that mostpeople think about when they
think about a mortgage.
You'll see here.
6490 is the lowest rate we havehere available with the APR of
6.
802.
(01:13):
The next version here, uh, thenext option here, FHA, a little
more lenient on credit andcertain factors there.
Uh, you'll notice the rate is 5.
624 final APR of 6.
605.
So.
cheaper APR here on the FHAright now than the conventional.
Uh, next up here, we have a 30year fixed VA loan.
(01:35):
Uh, definitely an amazingproduct here if they qualify,
right?
This is for active, uh, militaryor veterans.
And you'll see here rates as lowas 5.
75 APR 6.
043.
So definitely the best option upthere if your borrower
qualifies.
Next up we have the USDA loan.
(01:56):
This is only for eligibleproperties in a USDA designated
area.
You'll see rates as low as 5.
75, APR 6.
451.
Now that wraps up most of theoptions that most lenders have,
but here at the MortgageCalculator we love all of our
special programs and our non QMprograms.
(02:18):
We have over 5000 programs herein house and starting here with
our 30 year fixed non QM all docprimary, right?
So, uh, different, uh,qualification here for income.
Typically, this is going to be abank statement loan.
You'll see here.
(02:39):
We also have options of profitand loss and all kinds of
different Options here, you'llnotice that the rate is as low
as 6.4998.
Final a PR 6.809.
Now we also have the alt dockfor investment property.
Again, typically bank statementsor 10 99 or p and l.
Uh, for the income, you'll seethe rates as low as 7% there.
(03:02):
Final a P 7.5.
Now, uh, you'll see here next,moving on a 30 year fixed
conventional as we go through.
More investment options here.
So 30 year fixed conventionalinvestment, 6.
875 final APR of 7.
211.
(03:22):
Now moving on to one of ourfavorite programs here, which is
DSCR.
So DSCR.
requires no income from theborrower, no employment from the
borrower.
We're simply going to go basedon the debt service coverage
ratio of the property, meaningdoes the, uh, rent cover the
expenses, right?
That would be a ratio of 1.
(03:43):
0 or higher.
So right now, 30 year fixed, uh,DSCR and for an investment
property, which they are onlyfor investments, you'll see
here.
Coming in at 6.
625 final APR 6.
951.
And not only is the DSCRcheaper, but it's a much, uh,
more streamlined program.
So, uh, pretty much a hundredpercent of investors would
(04:05):
choose the DSCR with a cheaperrate.
Much easier to qualify for andmuch easier loan to get done.
This does have a three yearprepayment penalty on this
option.
And if we move here to our DSCRinvestment property, if we add a
five year prepay, you'll seethat the rates are as low as 6.
499 final APR is 6.
(04:29):
809.
Now you'll see here we also havea DSER option with no prepayment
penalty, uh, which is definitelyan option, but you're going to
see obviously an increase in therate there.
Rates as low as 7.
0 percent final APR 7.
0.
Now, some more amazing productswe have here are our 30 year
fixed second mortgage.
(04:51):
So as opposed to doing a homeequity line of credit, we can
offer an actual 30 year fixedsecond mortgage to get cash out
of people's homes withouttouching that first mortgage.
First mortgage, especially rightnow.
A lot of people got a very lowrate, uh, when rates were, you
know, the lowest.
And, uh, so they may not want totouch that first mortgage and
may want to go ahead and do asecond mortgage without having a
(05:14):
variable rate HELOC, right?
So 30 year fixed second mortgageon a primary residence rate is
low rates as low as 8 percentfinal APR, 8.
38%.
Four.
Now we also have a 30 year fixedsecond mortgage for an
investment property, which isreally awesome.
Uh, rates as low as 9.
375%.
Final APR there is 9.
(05:37):
761.
Now we also have, uh, some cooloptions here for 30, uh, 40 year
DSCR investment.
Notice it has a three pay, athree year prepayment penalty on
it as well, but definitely anamazing option.
A 40 year DSCR investment, whichis also going to help your DSCR
ratio, right?
When you're on a 40 year asopposed to a 30 year.
(05:58):
And then we also have the 40year interest only, which again,
is going to definitely help yourDSCR ratio there with rates as
low as 6.
75 percent final APR 6.
821%.
So now we're going to go aheadand get into our topic for
today, which is limited reviewcondos, which we don't go over
(06:21):
here on our regular rates.
So I'm going to go ahead andturn it over to Jose here to
talk about today's topic oflimited review.
Good morning, everyone.
Thank you for joining us fordaily mortgage rates like with
the mortgage calculator thelimited review condo process Not
to be confused with Nonwarrantable condo loans is a
(06:45):
process whereby at a limitedloan at a reduced loan to value
The condo questionnaire does nothave to inquire About the
budget, uh, or the finances, uh,which seems to be, uh, a very,
uh, complicated matter.
Sometimes if the building doesnot have at least 10 percent of
(07:08):
the annual budget and reserves,then it would not be eligible.
For, uh, Fannie Mae, FreddieMac, uh, low down payment
financing, uh, and it would notbe eligible for Fannie Mae or
Freddie Mac financing period,unless you were not to have to
ask those questions, which iswhat the limited review condo
(07:31):
process does at a reduced loanto value.
Then you do not have to askabout the budget and you do not
have to review the budget.
So, it is, uh, offered, um, um,75 percent LTV maximum first
mortgage for primary 70 percentLTV maximum LTV for an
(07:53):
investment property.
And the good thing also, whichyou'll see in a minute, is that
we're also allowed to go up to90 percent CLTV, which is great
for the primary residences whereyou can add a HELOC to get to 90
percent CLTV, 75 percent on thefirst, 15 percent HELOC And then
(08:15):
10 percent down payment.
So let me go ahead and share theoptions I have for you today.
Our first option here is, uh,the straight purchase 75 percent
LTV.
So there is not, and this is areal important point I'd like to
make, there is not a It is abutton that you click for
example, to ask for a limitedreview condo loan that seems to
(08:39):
be some confusion.
It is just an accepted processof the review.
That is the LTV for a primarycondo purchase.
For example, it's 75 percent orless than it is eligible for a
limited condo review and then,um, processing has to, uh, be
(08:59):
request the correct condoquestionnaire.
If you go and you request a fullreview condo questionnaire and
submit that to underwriting,then that's just what you
submitted.
However, just note that you dohave the choice of limited condo
review questionnaire at 75percent or less.
(09:19):
So, uh, again, no loan levelprice adjustment.
foregoing limited review condo.
7 percent is our lowest costoption at par and we can buy
that down all the way to 6.
375 at a cost of 2.
125 points for our 75 percentLTV limited review condo
(09:41):
conventional purchase.
Our next option here is ourlimited review condo
conventional investmentpurchase.
So here the LTV does drop to70%, but again, the same
benefits of limited condoreview.
No questions on the budget.
(10:02):
7.
375 is our lowest cost optionwith a lender credit of 0.
125.
And you can buy that down allthe way to 6.
5 percent at a cost of 2.
375 points.
Now our next option is a non QMlimited review condo loans.
(10:23):
Great news is that, uh, non QMdoes allow limited review condo
purchases or loans, excuse me,for primary.
And investment properties.
However, what I will note isthat they follow, um, the more
restrictive, uh, Fannie Mae,Florida guidelines, which
(10:44):
actually I should, I should havestated here that the guidelines
I'm following here are the morerestrictive limited review
condo.
Uh, for Florida, uh, for therest of the U.
S., it's 90 percent LTV, uh, fora primary and 75 percent LTV for
(11:05):
an investment.
So, I'm showing you the morerestrictive, uh, Florida
guidelines here, but, uh, non QMdoes follow the more restrictive
Florida guidelines.
regardless of the state.
So here we are at 6.
999 as our lowest cost option atpar, and you can buy that down
(11:26):
all the way to 6.
25 percent at a cost of 2.
125 for investment purchase, 70percent LTV, condo loan.
And our last option here, leavethe best for last, Next is the
HELOC combo purchase that isavailable in this case.
Um, what would hold you backhere will be the HELOC
(11:49):
guidelines.
So we are able to go for aprimary purchase.
Up to 90% CLTV for the heloc.
Uh, so our first mortgage is at75% LTV, and then we have a
HELOC for 15% for A-C-L-T-V of90.
This one, uh, gives us the addedbenefit of no mortgage insurance
(12:14):
at 90% CLTV, only 10% down.
So 7.25% is our lowest costoption at par.
And you can buy that down allthe way to 6.375 at a cost of
2.25 points for our HELOC combopurchase.
And here we have our HELOC year,which is, uh,$75,000 heloc.
(12:41):
13.25% is the rate, the payment,excuse me, on that heloc.
So 90% CLTV HELOC combo withlimited review.
Benefits, so look to themortgage calculator for all your
limited review condo loans andnon warrantable condos Agency
(13:01):
and non QM.
All right.
Thank you Jose.
I don't see any questions herein the chat So I think we can uh
wrap it up, but definitely greatInfo to have, especially if
(13:24):
you're in Florida, but just, uh,you know, again, an important
point there, if you're going nonQM, it's going to go by those
guidelines.
So be careful of that,regardless of what state you're
in.
So that was a great point tomake.
So we'll go ahead and wrap it upthen.
Appreciate everybody tuning in.
Uh, remember we do this at 11 a.
m.
Eastern every weekday, where wego through our live rates and
then do a deep dive into adifferent topic.
(13:44):
So we'll be back tomorrow with anew topic at 11 a.
m.
Eastern for the next episode ofDaily Rates Live with The
Mortgage Calculator.
Have a great day, everyone.
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