Lending Guidelines Are Changing for Condo’s
It’s important for home buyers to know that there have been many changes in financing for condominium complexes. It may be that the complex you want to live in does not meet the guidelines to obtain a loan. Be sure you have the following information prior to even looking at condominiums to ensure that the complex qualifies for a loan!
- Does any one entity own more than 10% of the units?
- Is there litigation?
- How many homeowners are over 30 days delinquent?
- How many are owner occupied, 2nd homes or investment properties?
- Was it converted to a condo from an apartment?
- What percent is the reserve study funded? What is a reserve study you ask?
- Is it even a condo? Some properties may not appear to be a “condo” but may have a condo legal description.
There are many factors to consider in the various types of financing available for condo’s. Are you interested in a project? Call me and let me do the legwork to see what kind of financing you are eligible for BEFORE you make the first step.
Posted in Financing, Home Buying Tips
