A condominium rider is a legal addendum attached to a mortgage, deed of trust, or security deed whenever the financed property is a condominium unit. Lenders require this document because condominium ownership involves a shared-property structure that creates obligations beyond those in a standard home loan.
The rider outlines five core areas of responsibility between the borrower, the lender, and the condominium association:
Any borrower taking out a conventional loan, FHA mortgage, or Fannie Mae-backed mortgage to purchase or refinance a condominium unit must sign the Condominium Rider alongside the main mortgage instrument. The document is standardized as Fannie Mae Form 3140 and is accepted by most lenders across the United States.
The 1-4 Family Rider covers rental income and maintenance obligations for multi-unit residential properties, while the Balloon Rider applies to loans with a lump-sum balloon payment at the end of the loan term. The Condominium Rider is the only rider that addresses the borrower's relationship with a condominium association, making it unique to condominium purchase and refinance transactions.
For a complete condominium transaction, you may also need the Condominium Resale Form or a Condominium Sale Contract as part of your closing package.
| Question | Answer |
|---|---|
| Form Name | Condominium Rider Form |
| Also Known As | Condo Rider, Fannie Mae Form 3140, Condominium Rider Addendum |
| Form Length | 2 pages |
| Fillable? | No |
| Fillable fields | 0 |
| Avg. time to fill out | 30 sec |
| Used With | Mortgage, Deed of Trust, Security Deed |
| Other names | what is a condominium rider, fannie mae rider, form condominium rider, illinois condominium rider |