Know These Numbers Before Purchasing A Condo

I love Condo living. Although I am not currently living in one, when I did, it was always TOP FLOOR END UNIT and I was a happy home owner.

If you are in the market for a Condo and you are going to finance, you should know the answer to these two questions. Knowing these answers can and will save you a great deal of frustration in the end:

1) Is the Condo Association approved for FHA and VA Loans? While there are some 95/5 Conventional Loans available, the fact is, FHA can save you some up front money when it comes to a down payment. Of course the VA Loan requires NO money down.

These Two Websites Might Be Helpful:
Approved Condo Associations For Veteran Loans
Approved Condo Associations For FHA Loans

2) How Many Condos Within The Association Are Owner Occupied? Every prospective condo buyer should be aware that Conventional Lenders and FHA actually have a ratio that is acceptable/unacceptable. Sometimes the ratio is 40% and other times slightly less or slightly more. There is much more that could be written here but space is limited. Just know that this is of great, great importance. You must know the number your lender requires and that the Association you want to buy into falls within the guidelines. Otherwise you won't be able to acquire the loan.

Lessons Learned: The best thing a buyer can do is ask their Realtor these two questions before making an offer. The research will take a little bit of time but the inconvienience will be minimal when compared to coming up to the day of closing and finding out the Loan you were expecting to get will not be granted!

While I am not a Lending/Loan Officer, I know these two rules are of great importance. Talk with your lender for more information.