I have been doing open houses for a new Condo complex here in Bellingham Washington called"Telegraph Ridge".
I wanted to quickly answer some questions that frequently come up regarding financing of new condo projects. I am not a lender or in the banking industry, but as a real estate agent, I feel I should have some basic answers for potential customers who are looking to buy.
When you are talking financing for "New Condos" as opposed to resale condos, your lender will probably ask you what exactly you are trying to finance.
For conventional financing, each lender must approve each condo project they lend in.
There are two types, "New" or "Existing".
New condos are where the homeowners have not taken over control of the association, the project is still under construction (phases), there are more than 10% of the units still for sale (any of the above criteria makes it new ((at least in Whatcom County Washington )).
1. Full project approval requires obtaining:
A. Current budget B. Association Declarations C. Articles of Incorporation D. Bylaws E. Evidence of Insurance F. Use for Investment must have 51% owner Occupancy.
There are many factors in getting financing on condos, but this is just a quick guideline for buyers to follow when they do decide to make the exciting leap into home ownership!
Patrick Johnson, ABR E -pro