YourCondominium Guide to Financing

Thinking of buying a condo? Want to know if the property you’ve got your eye on is eligible for conventional Fannie Mae financing? If so, you’ve come to the right place. Many factors influence financing eligibility, and some may be out of your and our control. We’ve put together a list of conditions to help you determine whether or not the condo may qualify. Deal Breakers Caution Ahead If you answer YES to ANY of the conditions below, These factors won’t disqualify the condo automatically, THE CONDO IS INELIGIBLE FOR FINANCING WITH BUT BE AWARE – THEY MIGHT MAKE FINANCING AT THIS TIME: MORE COMPLICATED: ∞ The site contains one of the following: houseboat or ∞ You own multiple condos with a single deed. floating home, segmented ownership, manufactured ∞ The HOA owns or operates businesses, such as a home, or timeshare units. day care or spa. ∞ You only have rights to occupy the condo and ∞ More than 20% of the project development is reserved don’t own it. This is also known as “community” for commercial/nonresidential use, including businesses such or “common interest apartments.” as stores or malls. ∞ The property is being used as both a condo and a ∞ Mechanicals, such as plumbing fixtures and furnaces, along hotel, or has hotel amenities, such as the ability for with utilities are shared between units. the association to do short-term rentals for units in the project. ∞ The condo is subject to current litigation. ∞ The property is a cooperative, meaning a corporation ∞ The property is a former apartment building that sold holds the title. all of the units to individual owners. ∞ Less than 51% of the units in the project are occupied as ∞ More than 15% of the units are delinquent in their primary or second homes. HOA dues for at least 30 days. ∞ The property is an investment security, which acts as a ∞ A single entity, such as a corporation or an liquid asset, and has documents on file with the Securities individual investor, owns more than 10% of and Exchange Commission (SEC). the units in the development. ∞ Project facilities are owned by the developer and are ∞ The development restricts the unit owner’s ability to sell subject to be leased by the Homeowners Association by including a right of first refusal (ROFR), which gives a (HOA) to another party. designated person the right to purchase the condo before the offer is made available to others. ∞ The project is less than 100% complete, including common areas, units and phases. ∞ The number of units owned by investors exceeds 49% of the total units. ∞ The builder is in control of the HOA. ∞ Less than 10% of the budget is allocated toward replacement ∞ The number of units sold and closed is less than 90% reserves. of the total units. ∞ The Fidelity Bond insurance is less than 3 months’ worth Scratching your head in confusion? of HOA dues. Call our Home Loan Experts at (800) 784-2536. Nod your head yes to any of the above? We’re happy to answer your questions. If so, we’re sorry to say this condo is ineligible for Fannie Mae financing. Not quite sure? No problem. Give our Home Loan Experts a call at (800) 784-2536. Quicken Loans is an Equal Housing Lender. Quicken Loans Inc. is a licensed mortgage lender. Arizona: Quicken Loans Inc., 16425 North Pima, Suite 200, Scottsdale, AZ 85260, Mortgage Banker License #BK-0902939; Arkansas: Quicken Loans Inc., 1050 Woodward Avenue, , MI 48226-1906, (888) 474-0404; California: Licensed by Department of Corporations, CA Residential Mortgage Lending Act; Colorado: Quicken Loans Inc., NMLS #3030, (888) 474-0404, Regulated by the Division of Real Estate; Georgia: Residential Mortgage Licensee (#11704) – 1050 Woodward Avenue, Detroit, MI 48226- 1906; Illinois: Residential Mortgage Licensee #4127 – Department of Financial and Professional Regulation, 1050 Woodward Avenue, Detroit, MI 48226-1906; Maine: Quicken Loans Inc., Supervised Lender License NMLS #3030; Massachusetts: Quicken Loans Inc., Mortgage Lender License #ML-3030; Minnesota: not an offer for a rate lock agreement; Mississippi: Licensed by the Mississippi Department of Banking and Consumer Finance; Nevada: Quicken Loans, Inc. 8860 S. Maryland Parkway, Las Vegas, NV 89123, License #356738; New Hampshire: Licensed by the NH Banking Department, #6743MB; New Jersey: Licensed Mortgage Banker – NJ Department of Banking, first (and/or second) mortgages only; New York: Licensed Mortgage Banker – NYS Banking Department; Oregon: Quicken Loans Inc. – License # ML-1387; Pennsylvania: Licensed as a first Mortgage Banker by the Department of Banking and licensed pursuant to the Pennsylvania Secondary Act; Rhode Island: Licensed Lender; Texas: Quicken Loans Inc., 1050 Woodward Ave, Detroit, MI 48226; Virginia: Quicken Loans Inc., NMLS ID #3030 (www.nmlsconsumeraccess.org); Washington – Consumer Loan Company License CL-3030. Quicken Loans Nationwide Mortgage Licensing System #3030. Rates subject to change. Restrictions may apply.

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