Mortgage News

What you need to know about condos

What you need to know about condos

March 27th, 2015

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
.