Here is a great list Condo questions from a fellow Prospect Mortgage loan officer. Condo financing can be tricky in today's market. Having a knowledgeable loan officer is critical to a successful closing.
If you are buying a condo, ask these 10 questions before you sign on the dotted line . Condos are hard to finance these days, as I am sure you have heard that and lot of times borrowers would have spent the funds on the appraisal, inspection and made a loan application just to find out after 3-4 weeks that condo cannot be approved and they will not be able to secure financing on that home .
My suggestion is to avoid all these heartaches and stress and ask some important questions before buying a condo.
The best resource is to ask your Realtor , of the listing agent to help you out with these answers .
Here are the questions :
1. Is the project complete? The answer should be yes, if not at least the phase you are buying should be complete.
2. Are all common areas in the project complete? The answer should be yes.
3. How many units are in the project?
4. How many owner occupied? The owner occupied units should be at least 51%.
5. Is there any pending litigation against the project? The answer should be no.
6. How much money is in the Reserve fund? Reserve fund should have at least 10% of the annual budget.
7. Is the HOA been turned over to the homeowners? The answer should be yes.
8. How many units are delinquent on their HOA dues? The answer is no more than 15%.
9. Are there any special assessments? If yes, it can change your total payment.
10. Another thing to ask is if the project is FHA approved , if it, chances are it is going to be simple to get approved for FNMA, VA loans also.
so don’t be sad, ask the right questions and become a proud owner of a condo. It can be done .
Please contact us for any questions or concerns about condo financing .