A condo questionnaire is a form sent to a condo development by a lender when a potential borrower applies for a mortgage.
The questionnaire allows the lender to determine if the condo meets its requirements for a loan. If the requirements are met, the lender can in turn consider providing a loan to the condo buyer.
Someone associated with the condo fills out the questionnaire. This is often the condo building’s managing agent. The borrower cannot fill it out directly.
The content of a condo questionnaire is established by government agencies, but a lender may also have their own version for loans that will be held on a lender’s books and not sold to the government.
Here is the standard preamble to a condo questionnaire from Fannie Mae:
“This form has been sent to you on behalf of an individual seeking mortgage financing to purchase or refinance a unit in this project. The mortgage lender needs this information to determine the eligibility of the project for mortgage financing purposes. Complete and return this form by (enter date) to the lender listed below. Questions about this form should be directed to the lender contact.”
A condo questionnaire asks about:
Check out the sample questionnaire at the bottom of this post for the full slate of condo questionnaire contents.
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In many cases, condo sales teams will work with a few banks, or lenders. Therefore, it is possible, even likely, that when you ask for a loan, your bank will have an existing relationship with the condo’s sales team. In this case, your bank may already have received a questionnaire from the condo you are buying in. If your bank is new to the condo building or hasn’t recently made a loan in that building, the bank will send a questionnaire for completion or updating.
The bottom line: A condo questionairre is an important document, but it’s the condo developer’s responsibility to get it signed, not yours. That said, you will need the questionnaire approved to be able to move forward.
The fee for a condo questionaire is generally about $250-300. The prospective borrower typically pays the fee.
Freddie Mac suggests lenders use either without appearing to distinguish between them. As you’ll see in the sample forms below, the long form asks some additional questions about project completion, finances, and ownership of condo units.
The full form also includes an extra section on newly converted or rehabilitated projects. This asks if the project was converted into a condo from a previous apartment building, hotel, or office. If the lender suspects this may be the case, they will want to send the full form to get details about the conversion.
A number of condo features can lead Fannie Mae or Freddie Mac not to back your loan. This will discourage lenders from doing business with you. The non-exhaustive list of no-go condo features for Fannie Mae & co. includes:
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