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 ..