Condos offer plenty of convenience, especially for urban residents. In cities, like the New York City — Jersey City metropolitan area where Stem Lending is headquartered, condos are often the most common option available.
Refinancing a condo using a conventional mortgage differs from refinancing a traditional house in that the condo or planned unit development (PUD) project needs to be approved by Fannie Mae or Freddie Mac.
A number of condo project characteristics can render a corresponding condo units' refinance to be ineligible for purchase by Fannie Mae / Freddie Mac. This includes projects in which the condo HOA or co-op corporation is named as a party to pending litigation, or for which the condo project sponsor or developer is named as a party to pending litigation that relates to the safety, structural soundness, habitability, or functional use of the condo project.