This time with the NEW rules, it is more difficult to get mortgage financing for condos...as if it wasn't difficult already to purchase a home.
WHAT ARE THE NEW RULES?
The owner occupancy of a building must be at least 51% owner occupied to purchase with an FHA loan.
The owner occupancy of a building must be 70% for a conventional purchase.
For both FHA and conventional, the delinquent condo dues must be under 15%.
WHAT DOES THIS MEAN FOR YOU?
This means that more than ever, as an owner of a condo, you are financially tied to other owners in the building. If they are behind in their condo dues, it will be more difficult for you to sell your home. As an owner, your options might be limited for renting your home to move to bigger and better things, if your condo building is nearing or above the minimum investor ratio.
From a buyer's perspective, you will need to inquire about the condo association's investor ratio and delinquency rate before placing an offer on that PERFECT condo.
Call me at 301-452-4767 with any real estate questions!