Condo Limited Review Form - Page 4 of 4
This is not a commitment to lend. For use by mortgage professionals only. WestGen Lending is a DBA of Beckam Funding Corp. Available loan amounts and LTV limits subject to Beckam Funding Corp. underwriting
review. Beckam Funding reserves the right to revise programs, rates, and guidelines without notice. All loans are made in compliance with federal, state, and local laws. Beckam Funding Corp. is a California Corporation,
Licensed by Department of Business Oversight under California Finance Lenders Law License #60DBO102460. NMLS# 317332
Master or blanket type of insurance policy that covers 100% of the insurable replacement cost of the
project improvements, including the individual units in the project. The maximum deductible must be no
greater than 5% of the face amount of the policy
HO-6 Policy required if the unit interior improvements are not included under the terms of this policy
type, the borrower is required to have an HO-6 policy with coverage, as determined by the insurer,
which is sufficient to repair the condo unit to its condition prior to a loss claim event
Flood Insurance Coverage Requirements
(See FNMA Website: https://www.fanniemae.com/content/guide/selling/b7/3/07.html
The minimum amount of flood insurance required for most first mortgages secured by one- to four-unit
properties, individual PUD units, and certain individual condo units (such as those in detached condos,
townhouses, or rowhouses) is the lowest of:
• 100% of the replacement cost of the insurable value of the improvements;
• the maximum insurance available from the NFIP, which is currently $250,000 per dwelling; or
• the unpaid principal balance of the mortgage.
If a first mortgage is secured by a unit in an attached condo, co-op, or PUD project and any part of the
improvements are in an SFHA, the lender must verify that the HOA or co-op corporation maintains a
master or blanket policy of flood insurance and provides for premiums to be paid as a common expense.
Stand-alone flood insurance dwelling policies for an attached individual condo unit are not
acceptable. A master condo flood insurance policy must be maintained by the HOA, subject to the
coverage requirements below. (For detached units, refer to the requirements described in Coverage for
First Mortgages above.)
The HOA must obtain a Residential Condominium Building Association Policy or equivalent private flood
insurance coverage for each building that is located in an SFHA. The policy must cover all of the common
elements and property (including machinery and equipment that are part of the building), as well as each
of the individual units in the building.
The master flood insurance policy must be at least equal to the lower of
• 80% of the replacement cost, or
• the maximum insurance available from NFIP per unit (which is currently $250,000).
If the condo project master policy meets the minimum coverage requirements above but does not meet
the one- to four-unit coverage requirements (described in Coverage for First Mortgages), a supplemental
policy may be maintained by the unit owner for the difference.
The contents coverage should equal 100% of the insurable value of all contents (including machinery and
equipment that are not part of the building), owned in common by association members. If the condo
project has no master flood insurance policy or if the master flood insurance policy does not meet the
requirements above, mortgages securing units in that project are not eligible for delivery to Fannie Mae.
Note: DU Refi Plus and Refi Plus loans secured by units in a condo project are not required to meet the
flood insurance requirements for master flood insurance policies stated in this section. Rather, if no master
policy is in place, a standalone dwelling policy may be maintained by the unit owner to meet the full one-
to four-unit requirements. If the master policy is deficient (by any amount), a supplemental policy may be
maintained by the unit owner for the difference between the master policy and the one- to four-unit