List of Ineligible Project Characteristics

Homium will not close and fund mortgage loans that are secured by units in certain condo if that project has characteristics that make the project ineligible. Such characteristics are described in the table below, with additional details provided in the sections that follow. All eligible projects must be created and remain in full compliance with state law and all other applicable laws and regulations of the jurisdiction in which the project is located.

Note: If an underwriter determines that a project does not meet all of Homium’s project eligibility requirements but believes that the project has merit and warrants additional consideration, the underwriter may request an exception from Executive Management.

Timeshare, fractional, or segmented ownership projects.
New projects where the seller is offering sale or financing structures in excess of Homium’s eligibility policies for individual mortgage loans. These excessive structures include, but are not limited to, builder/developer contributions, sales concessions, HOA assessments, and/or contributions not disclosed on the settlement statement.
Projects that are managed and operated as a hotel or motel, even though the units are individually owned. (See Projects that Operate as Hotels or Motels below for additional detail.)
Projects with covenants, conditions, and restrictions that split ownership of the property or curtail an individual borrower’s ability to utilize the property. (See Projects Subject to Split Ownership Arrangements below for additional detail.)
Multi-dwelling unit projects that permit an owner to hold title (or stock ownership and the accompanying occupancy rights) to more than one dwelling unit, with ownership of all of their owned units (or shares) evidenced by a single deed and financed by a single mortgage (or share loan). (See Projects that Contain Multi-Dwelling Unit Condos below for additional detail.)
Projects with property that is not real estate, such as houseboat projects. (See Projects with Property that is not Real Estate below for additional detail.)
Any project that is owned or operated as a continuing care facility. (See Projects that Operate as a Continuing Care Community or Facility below for additional detail.)
Projects with non-incidental business operations owned or operated by the HOA including, but not limited to, a restaurant, spa, or health club. (See Non-Incidental Business Arrangements below for additional detail and exceptions to this policy.)
The total space that is used for nonresidential or commercial purposes may not exceed 35%. (See Commercial Space and Mixed-Use Allocation below for additional detail.)
Projects with mandatory upfront or periodic membership fees for the use of recreational amenities, such as country club facilities and golf courses, owned by an outside party (including the developer or builder). Membership fees paid for the use of recreational amenities owned exclusively by the HOA or master association are acceptable. (See Recreational Leases and Mandatory Memberships below for additional information.)
Projects that do not meet the requirements for live-work projects. (See Live-Work Projects below for additional detail.)
Projects in which the HOA is named as a party to pending litigation, or for which the 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 project. (See Litigation or Pre-litigation Activity below for additional detail.)
Projects in which a single entity (the same individual, investor group, partnership, or corporation) owns more than the following total number of units in the project: projects with 5 to 20 units – 2 units projects with 21 or more units – 20% (See Single-Entity Ownership below for additional detail.)