Many buyers start with a condominium because it makes a great starter home. It’s also the perfect option for small families or older couples who don’t want to deal with outside maintenance.
Buying a condo can be a smart move, but before you do, let Priva Mortgage help you get the financing you need.
Condominiums have a few factors that make buying a home a little different. Not all lenders have condo loans because they are a little riskier for lenders. Because you don’t own the entire property yourself, lenders have to concern themselves with the homeowner’s association, their budget, and rules.
For example, if the association allows too many of the units to be used as rentals, it can be harder to get financing on the property, but the professionals at Priva Mortgage can help
Even though buying a condo is a little trickier, you still have plenty of mortgage options if you buy a condo that’s already approved. For example, some developments are already FHA or VA approved. If you borrow FHA or VA funds, you can simply provide your qualifying factors and close on the loan.
If the condo development isn’t approved, though, we have other options to help you get the financing you need.
Contrary to what many people believe, condos don’t require a larger down payment than any other properties. If you’re buying the condo for your primary use (you’ll live there full-time), you’ll need 3% - 5% down on the property. This opens up possibilities for many people to buy their first home without a large down payment!
Homebuyers don’t need perfect credit to buy a condo. As long as you have average credit and an average debt-to-income ratio, you may be eligible to buy a condo.
If you have bad credit, we have programs to work with you, but you may need a larger down payment or other compensating factors. We need to make sure you can comfortably afford the loan. We don’t want anyone getting in over their head.
Before you buy a condo, we encourage you to learn a lot about the association. Ask what the HOA fees are each month and what they include. Also, find out what you can and cannot do to your unit and how all maintenance and repairs are handled.
Since you’ll share your exterior walls and common areas with other condo owners, you should know the association’s rules and how they screen potential buyers to make sure you’re making a solid investment.
Buying a condo is exciting and overwhelming. Let our professionals walk you through the process to make sure you get the condo that’s just right for you with the financing you can afford.
Call us today to see how we can help!