What you need to know about condos

What you need to know about condos

Condos have their own set of regulations because lenders view them as a higher risk. Why? As an owner, you rely on other unit owners to maintain their places and pay condo association fees.

If you plan to finance a condo, you need to know if the condo project/building is considered warrantable (follows guidelines for Fannie Mae, Freddie Mac, FHA, VA, etc.). 

If a property is not warrantable, you will have a tougher time with financing.

Examples that make a condo warrantable include:

  • 51% of all units in the entire development have owner occupants
  • No more than 15% of the current unit owners are delinquent in payment of homeowners dues
  • No one individuals/entity may own 10% or more of the units in the condo development  

Lenders will require the property manager to complete a condo questionnaire to determine if a condo is warrantable.

Any more questions about condos? Just ask me! 

Call 757-490-4726 or email me