So if your roof has a useful life of 25 years and your elevator has a useful life of 60 years you will pay for the roof before paying for the elevator however the reserve study should show money being set aside for both elements yearly. The balance will almost never be fully funded to account for every common element replacement in one year. It is based on the useful life of the components which varies. The goal is to have the money available for when common elements need replacing. Brad, Yes. Homeowners Association can be fully-funded. Until something big happens and it requires a special assessment to cover it and still maintain reserves.
Also, high assessments can make it difficult to sell units in the association.
Kind of a Catch My condo association has You should be able to get that from your building manager or the board of directors. Twitter Facebook Linkedin Youtube. View Larger Image. By Ilyce Glink T April 19th, Related Posts. July 11th, 0 Comments. June 21st, 0 Comments.
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June 6th, 0 Comments. Nadeen December 5, at pm - Reply. Larry Norris January 21, at am - Reply. Maurice March 1, at am - Reply. Ilyce Glink March 3, at pm - Reply. Maurice, these are excellent suggestions. Thanks for putting in your two cents! Ilyce Glink, Publisher ThinkGlink. Is there such a thing as a fully funded reserve so no additional funding is necessary? Ilyce Glink March 6, at pm - Reply. Hope this helps. Thanks for your comment.
Condominium and Cooperative Project Approval
Marcia Martin April 22, at am - Reply. Where can I find documentation that shows that a Homeowners Association can be fully-funded? Do you know of any sources that a lender can refer to? Ilyce Glink April 22, at pm - Reply.
Contact Accunet Mortgage for step-by-step guidance on financing your condo through Fannie Mae. Limited condo reviews are a streamlined review process for lower-risk loans. Condos with limited reviews are usually way more likely to be approved than those submitting full reviews. Luckily, most condo purchases and refinances fit into this category.
The following circumstances require a lender to perform a full review of the condo project if the loan will be sold to Fannie Mae or Freddie Mac, because these circumstances are viewed as being more risky:. The full condo project review involves gathering more documents from the association. Keep in mind listing agents have to disclose adverse facts. Documents needed for a full condo review:.
Contact Accunet for help preparing for a full condo review.
Fannie and Freddie Litigation Guidelines a Minefield for Condo Boards | Habitat Magazine
View the full list of ineligible characteristics from Fannie Mae, and check out some of the most common finds:. Depending on the issue, Accunet Mortgage may have non-Fannie Mae money sources that can still fit your situation. Or if the building in which your condo unit is located is substantially complete, but there are other buildings in the project that are still under construction, we have a loan program for that, too: an adjustable rate mortgage where the initial rate is fixed for 5, 7 or 10 years.
If you made it the end of this weighty tome, congratulations, and thank you for learning more about the details of condo ownership and financing. Learn more about the home buying process with Accunet Mortgage. Is my condo Fannie Mae-approved? Factors impacting your review types The 2 types of condo approvals: Full vs.
Limited What is an established project? Limited condo reviews Full condo reviews What makes a condo ineligible for Fannie Mae approval? Factors impacting your review type: Whether your condo is a primary residence or a second home Condo location Whether your condo is attached or detached LTV Loan-to-Value ratio. This takes into account all your mortgage lines — not just your first. The 2 types of condo approvals: Full vs. Limited This next section summarizes the key elements of each review type; if you want the actual granular details straight from Fannie Mae, click here.
Limited condo reviews Limited condo reviews are a streamlined review process for lower-risk loans. Full condo reviews Full condo reviews are much more intensive than limited reviews.