Condominium Insurance Requirements
A master insurance policy is a insurance policy that is paid by the association dues collected in a condo project that covers the exterior of the building. We have been seeing many banks and mortgage companies struggling to get deals closed because they do not understand what is needed on a master insurance policy. Specifically they do not understand Fannie Mae & Freddie Mac’s guidelines when it comes to co-insurance or they have their own additional “overlay” that prevents them from lending in a particular condo project in Fort Lauderdale and South Florida.
What is an “overlay?” An overlay is an additional requirement that a lending institution will add on top of Fannie Mae, Freddie Mac, FHA, VA’s, etc. guidelines. It is added to reduce their risk based upon what they feel could be a potential issue. As a consumer you will not know who has these on what programs. That is why you need to come to us as we have our own products along with other bank products.
If you are having trouble getting your loan closed due to an issue with the master insurance or any perceived “overlay” please call or email us today – (954) 903-7256 or [email protected]