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Announcement # 2018-54 SmartCondo Product Launch

Announcement 2018-54

August 31, 2018

New Product Launch - SmartCondo

NPF Smart Condo

Great News!  New Penn is pleased to announce the rollout of our new SmartCondo product. This product will provide expanded financing solutions for condominium properties that do not meet agency guidelines (a.k.a. Non-Warrantable Condos). This new product offering will be available for all channels beginning Tuesday, September 4th. 

Non-Warrantable Features

 SmartCondo allows projects to have up to *two (2) non-warrantable features such as:

  • Up to 50% commercial space allowed
  • Up to 49% single-entity ownership (non-gut conversions up to 65%)
  • Recreational leases for amenities such as clubhouse, pool and recreational facilities
  • Up to 75% investor concentration
  • Reduced pre-sale requirements as low as 30% of units sold or under contract
  • *Florida new construction permitted without PERS

* Florida new construction limited to 1 non-warrantable feature

Project Requirements

  • Must have a minimum 500 square feet
  • Must have a separate bedroom and fully functioning kitchen with a stove
  • A full project review will be completed by the NPF Project Review team prior to approval

Product Highlights (refer to the product profile for complete details)

  • P&I and IO Terms for 30-year fixed, 5/1, 7/1 & 10/1 ARMs
  • Loan amounts up to $2,500,000 for primary residence, $2,000,000 for second homes and $1,500,000 for investment properties
  • Minimum 660 FICO
  • Maximum 90% LTV with no MI required
  • Maximum 45% DTI
  • Up to $500,000 cash out allowed

 Additional Details:

The SmartCondo product profile will be posted to the Lending Library on Tuesday, September 4th. Please refer to the New Penn Financial National Correspondent Division’s Product Matrices for specific details.