So You Want to Buy or List a Condo…Will Financing Be Available?

 

One of the bigger issues today. Don’t think we are just referring to apartment living. Condo’s can also be town homes. The drop in the market, the foreclosures, the economy and several other factors have turned condo’s into nightmares.

If you have cash, you may still be able to get a bargain, but don’t forget the condo association has bills that have to be paid. If several members stop paying, the others have to make up the difference.

If the association fails, the remaining owners become defacto slum lords. No maintenance, no master insurance, etc.

Bridget knows her stuff..read on and take heed!

 

Via Bridget “Mortgage Mama” McGee (Allied Home Mortgage Capital Corp 410-960-2061):

I got a call yesterday from a realtor (referred to me by Margaret Rome, THANKS MARGARET) who has a client interested in condo living.  There are some fabulous condos on the market, the prices are right, the amenities are fabulous.  For cash buyers, condo living may be a no brainer, but for many the question will be “Will financing be available?”

To determine if the condo is currently approved for FHA financing, click here.

To determine if the condo is currently approved for VA financing, click here. It can take 8-12 weeks for the VA legal department to approve a condo.  Documents including budget and condo docs will be required for review.

The condo association may already be approved for conventional financing by specific investors, your loan officer should be able to determine.  If not, the investor will need at least the following information from any condo association you are considering (if they are not already approved):

  1. 2011 budget
  2. Condo Master Insurance Policy
  3. Signed and Dated Condo Questionnaire

There may or may not be a fee required by the condo associated for gathering the documentation.

Most lenders will  probably not approve financing if:

  • the association is involved in any litigation
  • there is over a 15% delinquency rate on dues
  • the condo is over 20% commercial
  • one entity owns 10% of the condos

Don’t be discouraged if a condo listed for sale is not yet approved for available financing, with some skill, diligence and proper documentation, we can help you to navigate the approval process for condos in Maryland so when someone asks “Will financing be available?”  You can answer “YES” with confidence!

Warm Regards,

Bridget McGee  Maryland Mortgage Mama   Allied Home Mortgage Capital Corp #1448  410-960-2061 EHO

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