Escrow & Title

In Florida, a 'condominium rider' or 'PUD addendum' is added to a mortgage when:

AThe property is located in a flood zone
BThe security property is a condominium unit or property in a planned unit development✓ Correct
CThe borrower has poor credit
DThe loan exceeds conforming limits

Explanation

A condominium rider (or PUD rider) is added to the standard mortgage when the collateral is a condominium unit or a property in a PUD. It contains specific provisions regarding the association, common areas, and the borrower's obligations relating to the association.

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