Buying a Condo? 5 Things to know:

Blog / May 4, 2017

Buying a Condo? 5 Things to know:

By Justin Messing

Let’s face it…does anyone really enjoy shoveling their driveway full of snow in 15 degree weather? For many people, the idea of maintaining a yard makes them cringe. A Condo is a great turn-key alternative versus a traditional House. There are a few things to consider when seeking a Mortgage on a Condo.

  1. Home Owner’s Association (HOA) Fees: these monthly Condo fees count towards your total debt-to-income ratio.
  2. Lendable – not all Condo associations are approved for traditional Mortgage lending. When this is the case, alternative financing is sometimes available.
  3. FHA – a Condo must be FHA approved in order to use FHA financing to purchase.
  4. Rate – mortgage rates on a Condo may be slightly higher in some cases.
  5. Insurance – an H06 policy is required to insure everything inside the walls. This is less expensive than tradition home insurance.

There is a document called a Condo questionnaire that provides information on the financial well-being of the HOA. It’s a good idea to review this document before you make an offer. There is often a small fee that the HOA charges to produce this document, but it’s well worth the cost. I’m happy to have my Condo department review this form for free, prior to purchase.

If you’ve decided to purchase a Condo, please contact me to discuss everything above, and more!

Justin Messing 

Eagle Home Mortgage

Mobile: 973-865-3252
Office: 973-865-3252
Direct: 973-865-3252
Fax: 1-844-813-2014

 

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