Things You need To Know When Buying In an HOA.
When buying in a HOA or condo association the association fee needs to be factored into your monthly payment. You may be pre-qualified for a home up to $150,000 but the association fee whether it is monthly or quarterly may cause you to be unable to purchase that home.
The government and conventional loans have guidelines to follow based on your income and the percent of income used to pay your monthly mortgage and also base on you totally monthly obligations. This in the industry is commonly called the "debt to ratio income." If you fall outside this window then you will be declined for the loan.
When buying in an association if there is a high percentage of delinquency the lender may not grant to loan.
It is important when buying a home in an association to read the documents as soon as you are given them because it will give you way out of the deal if the terms of association do not meet your expectations.
Associations can determine where your park, the color you paint your house, how many pets if any you can have, what you can display outside your home. The association can give additional assessments, when if not paid can cause a lien to be placed on your home.
Associations can foreclose on your home is fees are not paid.
Most associations require an application fee which is used to do a credit and criminal background check. They may also require a face to face interview with members of the Association Board.
Associations are run by a board which is usually your neighbors. They provide a community atmosphere as well as added security.
Associations can lead to reduced or elimination of cable bills because the fee of basic cable may be included in your association fee. They have been know to include the water bill within the association fees also.
Associations can give you play grounds, community pools, business centers, rooms for private functions and additional community activities.
Most importantly, read the association documents before buying and as soon as you get them.
Comments (33)Subscribe to CommentsComment