What is a limited review condo

A limited review condo is a type of condominium that has been reviewed by a lender for mortgage purposes, but only to a certain extent. This means that the lender has conducted a limited review of the condo complex and has determined that it meets certain requirements for financing, but has not conducted a full review of all aspects of the complex.

Limited review condos are typically considered less risky for lenders than non-warrantable condos, which are condos that do not meet the criteria for traditional mortgage financing. However, they are also considered to be riskier than fully warrantable condos, which have undergone a full review and have been determined to meet all requirements for mortgage financing.

Lenders may require a limited review for condos that meet certain criteria, such as those that are in a newer complex or those that have a high percentage of owner-occupied units. In these cases, the lender may feel comfortable lending on the condo with a limited review, as there is less risk of default or difficulty in selling the unit if the borrower were to default on the mortgage.

To determine whether a condo is eligible for a limited review, lenders will typically consider factors such as the percentage of owner-occupied units, the financial stability of the condo association, and any restrictions on renting out the unit. They may also consider the location of the complex and the overall condition of the units.

If a lender decides to conduct a limited review of a condo, they will typically review a subset of the complex's documents, such as the budget, financial statements, and insurance coverage. They may also require additional documentation from the borrower, such as proof of income and employment.

It's important to note that even if a condo has undergone a limited review, it may still be more difficult to obtain a mortgage for this type of property compared to a fully warrantable condo. Lenders may require a higher down payment, charge a higher interest rate, or have stricter lending criteria for limited review condos.

If you are considering buying a condo and are wondering whether it is eligible for a limited review mortgage, it's a good idea to speak with a Rize Mortgage loan officer and discuss your options. They can review the specific requirements for a limited review mortgage and help you understand whether this type of financing is a good fit for your situation.

Overall, a limited review condo is a type of condominium that has undergone a limited review by a lender for mortgage purposes, but has not been fully reviewed and may be considered riskier than fully warrantable condos. While it is possible to obtain a mortgage for a limited review condo, it may be more difficult and may come with additional requirement. It's important to carefully consider your options to determine the best financing solution for your needs.

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