Non-Warrantable. Condo-Tel. Co-Op Program


The Northstar Funding Advantage

  • Serving California, Colorado, Connecticut, D.C, Florida, Georgia, Illinois, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, South Carolina, and Virginia.
    • We can lend on co-ops, non-warrantable condos and condotels/li>
  • Loan sizes from $200,000 – $3,000,000 allowed*
  • Up to 80% LTV for owner occupied and 2nd homes**
  • 75% LTV cash out for owner occupied and 2nd homes with up to $1.5mm cash in hand
  • Investment properties allowed at up to 60% LTV
  • Northstar Funding allows up to 10 financed units and 15 total REO including cash out loans
  • Limited review of the co-op or condo
  • Review of Northstar Funding Co-op/Condo Certificate and the HOA master insurance policy required
  • Same building comps preferred
  • Only one appraisal required regardless of loan amount
  • Broker or borrower’s attorney can be used for closing and title work
  • Only one stock certificate, one lease and one security instrument typically needed for Co-ops
  • All specialty programs can be used in conjunction with Co-ops, Non-warrantable Condos and Condotels:
    • Asset Depletion
    • Work Visa/Expat
    • No Credit / Limited Credit
    • Foreign National
    • NOO cash out
  • Up to 6% seller’s concessions allowed for closing costs including upfront/advance HOA dues
  • Two week rush closings available – think of us if a loan has fallen out through a conventional source

*75k on a case by case basis with additional rate adjustments
**75% LTV max for condotels

Points to Remember

  • Minimum unit size: 500 ft2
  • Must have a full kitchen and a separate bedroom
    • No studios allowed
  • Large flip tax allowed case by case
  • Deed restrictions allowed case by case on subject property
    • Black out dates are not allowed
  • No pending litigation involving structural or construction items allowed
    • Litigation for other reasons can be reviewed case by case, typically at a reduced LTV
  • Low HOA reserves allowed case by case – call your AE for details
  • Must have 100% replacement coverage or agreed amount endorsement if coinsurance is present

Rate Adjustment and LTV Limits

Pricing example:

Add 1.00% to the rate for the co-op and non-warrantable condo/ co-op program or 1.25% for condotel plus lender paid comp if applicable and any occupancy adjustments.

ARM Product Features

  • Max DTI 43%
  • 80% LTV up to $1 million loan amount with reduced LTVs up to $3 million
  • 30 year amortization
  • No prepayment penalty
  • 2/2/6 caps, 1-year CMT Index, 3.0% Margin, Floor = Note Rate
  • Qualify at the start rate on 7/1, 2% over on the 5/1 and 6% over on the 3/1
  • Escrows required