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Do You Really Want To Buy A Condo ?

How to get a home loan is a lot harder than it was and it can be a lot more tricky when it comes to buying a condo.   There is one very important thing you have to do if after reading this you still want to buy a condo, which I will share with you so just keep reading.    I do get a lot of people asking me about qualifying to buy a condo since condos are usually cheaper in price than homes.  Now typically a condo will sell for much less than a home making it very attractive, but it does not mean that its less expensive than a home.  I know that sounds confusing I will explain.

I have to be honest, I do not like condos much.

Not that they do not have their place and you cannot get a good investment on one.  Or that those that buy condos hate them.  But I will explain cons and what you need to know before buying a condo or venturing into one.

1) Depending on the monthly HOA sometimes those monthly payments with your mortgage payments you total payment is the same and sometimes more than buying a home.

2) Because a lot of condos become rentals which some lenders will not do the loan on them because too many of the units are rented out, and sometimes the HOA’s have financial issues getting a loan for a condo can actually be a lot harder than it would be getting regular home loan.

3) Remembe HOA’s come with rules, such as leaving your garage door open or even what kind of door  knocker you can have on your door.  Which can result in a fine for not following the rules.

4) HOA ‘s almost always go with inflation so maybe the monthly dues are $150.00 there is no guarantee that they will stay there, something to keep in mind if your budget is tight.

5) Last but not least is that condo’s do not appreciate the same as a home on its own lot would.  They still appreciate of course but not the same as a home.

After all that you still want to buy a Condo I can help you get the loan for it.  But here is what you need to know.

Now a condo is great for those that have no time for yard work.   Or even those that like to entertain if the development has a nice club house or pool.  And being that they sell for less than a home it makes it easier to buy with smaller down payments than a home.

But you do need to check if the condo complex is on the FHA hud approved list especially if you are a first time home buyer.    Here is the link below to see if your condo complex qualifies.  If you need help in getting a home loan whether that be a FHA , VA or just a convention loan let me know and we can see what you qualify for.  If your condo is not approved it can be difficult getting a loan, basically this means that condo complex may have financial difficulties or that there are too many renters in that complex.  Meaning that you may not get the best rate possible or may have to put down a large down payment.

Good Luck ..

Click Here To See If Your Condo Is Approved.

 

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What You Need To Know If Buying A Condo?

All right here are some tips for you provided that you happen to be trying to buy a condo in the Santa Maria real estate market or where ever you plan on shopping for one, and what you need to be familiar with before hand.  Initial thing to keep in mind just like not all people are created equal and neither are all homes or condos and more importantly not all Condo associations!
The real estate market has quite a bit of condo complexes and with a number of  of them for sale,just like the homes in Santa Maria some are better than others for a number of reasons.  some of them are run very well and others not so well in addition to are underfunded.  The problem is when a condo association is having problems in addition to you purchase condo within that association their problems now become your problem.
Okay here are some tips for you assuming that you happen to be trying to buy a condo and what you ought to be familiar with before hand.  Initial thing to keep in mind just like not all people are created equal and neither are all homes or condos and more importantly not all Condo associations!
The real estate market has quite a bit of condo complexes and with many of them for sale.  A few of them are run very well and others not so well in addition to are underfunded.  The problem is when a condo association is having problems and you buy condo within that association their problems now become your problem.  When you acquire a condo you basically join a club in addition to take on a portion of the issues which they can be having.  So there are few steps that a person needs to keep in mind when considering a condo, because your decision is something that you will have to live with daily as you continue to own that condo.

1)      What is the Home Owners Association fee in addition to what does it pay for?

Generally this is just acknowledged as the HOA dues you could surely discover that some of those HOA dues as high as almost $400.00 per month.  Which is an extra $400.00 added toward your monthly payment on top of the loan on top of the taxes in addition to on top of the insurance, nevertheless I think you get the idea.  The HOA dues alone could make you or break you as to whether or not you will qualify for that condo or whether or not you even want to consider purchasing it.  The fee comes from the annual expenses to maintain the common areas such as the club house, the pool etc.  It is also a result of whether or not the association is professionally managed or self managed.  Provided that this is going to be your new monthly fee you need to recognize what your getting for what you pay for.

2)       Why Do HOA have rules?

This can unquestionably make acquiring your condo one extremely regrettable decision, considering the rules might prohibit pets, or even your ability to rent out the unit.  You will want to get a copy of the bylaws to see if there will be anything that you can have issues with.

3)      What is the percentage of renters vs. owners?

Usually renters do not at all possess the similar level of consideration for the property they abide in.  Whether or not it be a condo or a home too many renters tend to give unwanted issues.  Another consideration is that provided that there is too many renters in the condo complex the condo may not qualify for FHA financial backing.  Even with the condition that you were to acquire a conventional loan instead of an FHA loan and this was to be your primary home it may have to be financed as investment property due to the high number of renters.  A loan for investment property is normally an extra 1-2 points than the going rate for house which would be considered your primary home.   This could be a problem for certain communities when many homes for sale in addition to condos were bought by investors in the middle of the market frenzy many were used as investment properties.   Use the link below to find out if the Condo you anticipate on procuring will qualify for FHA funding due to having too many renters.

Here is the link to find out if your condo complex may or may not be approved simply go to:

4)     How much cash exist within the reserve fund account?

This is probably the most overlooked in addition to never actually taken into account until it is too late.  Procuring a condo you become part owner of the association in addition to a good number of  the bills which come with it. So with the condition that the association is poorly run or funded the condition of the condo complex as a whole can deteriorate.  Or a lack of funds can be an indication of possible litigation draining the fund which will eventually require a special assessment in regards to all those that intend to keep there condo units.  Reality just like individuals having to cope with bills and bad credit, a condo complex can end up having the issues when the bills and funds to pay them are not available.  You want to know is there an increase of delinquent owners if so the reserve fund will come to be drained.  Request a copy of their budge to look into if there can be any indications for concern.  The last you want is to do is to get a condo plan on a budget and get hit with new and higher HOA dues.   Don’t let this scare you seeing that obtaining a condo does have its benefits such as no yard and maintenance for some of us its simply not at all on the schedule in addition to it does every so often furnish you the luxury of having a pool and lets not forget the hot tub.  A few Condos even possess security which is a nice added benefit for anyone with kids especially supposing that you happen to be a single mom.  Basically look past the price in addition to make sure you will be happy with the condo association in addition to its rules and fees.  Getting a condo is not at all similar to buying a TV ,,,you can’t take it back supposing that you’re not happy with it.

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