United Wholesale Mortgage has expanded its financing options for non-warrantable condominiums and launched an address-based tool designed to help brokers identify potential loan products earlier in the transaction.
The expansion covers conforming conventional loans and select Jumbo, Investor Flex, and Bank Statement products. The options are available for qualified borrowers purchasing or refinancing condo properties that may fall outside standard agency requirements.
UWM broker partners can enter a condo address into the company’s new Condo Eligibility Tool to view potential project eligibility and suggested products.
For originators, that early look could help determine which financing path may fit before a loan moves deeper into processing.
Broader Project Eligibility
Under UWM’s published guidelines for its Conforming Conventional Non-Warrantable Condo program, borrowers must have a minimum 680 credit score. The program permits a maximum loan-to-value ratio of 90% and a debt-to-income ratio of up to 45%.
UWM will consider projects with several characteristics that can create obstacles under traditional agency guidelines, including:
- Commercial space comprising as much as 50% of the project
- As many as 25% of owners at least 60 days delinquent on association payments
- Non-incidental business income
- Mandatory membership fees
- Certain litigation in which the homeowners association is the plaintiff
- Condotels that meet additional requirements
Eligible HOA litigation cannot involve structural, safety, or marketability concerns, according to UWM’s guidelines.
The program calls for a reserve study when a project’s reserve allocation is below 3%. Borrowers must also have reserves equal to six months of principal, interest, taxes, insurance, and association dues for a primary residence, or 12 months for a second home or investment property. Two additional months are required for each financed property.
New projects may be considered on an exception basis when the issue involves incomplete construction or owner-occupancy requirements. Additional occupancy, LTV, and loan-amount guidelines apply.
A full project review is required under the conforming non-warrantable program.
Timing Follows Agency Review Changes
The expansion follows a significant change in the agency condo-review process.
Fannie Mae retired its Limited Review process for applications dated on or after Aug. 3, while Freddie Mac eliminated its corresponding Streamlined Review option. Established projects that previously qualified for an abbreviated review must generally receive a Full Review unless they qualify for another permitted waiver or exemption.
The changes place greater attention on the condominium project’s financial and physical condition. Association budgets, reserve funding, insurance, inspection reports, litigation, delinquencies, and critical repairs can all affect eligibility.
That makes early project screening more important. A borrower may qualify, but the transaction can still face delays if the association cannot provide the required records or the development falls outside the lender’s project guidelines.
UWM’s new tool gives brokers an earlier view of potential product options, while the expanded guidelines create additional possibilities for projects that do not meet traditional agency standards.
