December 16th, 2009 7:11 PM by Eric Fang
1)HO-6 Insurance requirement.It requires that the borrower obtain a "walls-in" coverage policy (commonly known as HO-6 policy) unless the lender can document that the master policy provides the same interior unit coverage.
The HO-6 insurance policy must provide coverage in an amount that is no less than 20 percent of the condominium unit's appraised value. The standard requirement for a 5 percent deductible applies.
And the premium for this coverage is around $600.
2)Owner-Occupancy Ratio RequirementsThe ratio should be at least 51%.
3)Delinquency RateNo more than 15 percent of the total units in a project can be 30 days or more past due
4)For attached condos, some lenders requires CLTV 80% or less.