Buying a condominium (condo) is a unique situation, because while the owner of the condo has full ownership of the interior of their unit (just like they would any other home), a condo association owns the common areas. It’s important to work with a mortgage lender that will not only provide top-notch financing, but also has the expertise to take you through the process step-by-step.
- No-down-payment option available, with loan amounts up to $975,000
- Flexible condo review process
- Fixed-rate and adjustable-rate mortgage (ARM) options available
- Financing available for purchases and refinances
- Non-warrantable condo options available
- Loans available for all occupancies – primary homes, secondary homes, or investment properties
Owning a condo gives many homebuyers the best of both worlds: the perks of living in a smaller, more manageable space, and the perks of having full homeownership.
Did You Know?
More and more people are deciding that owning a condo, rather than a single-family home, is a better fit for their specific needs and lifestyle. Owning a condo comes with many perks, like:
- Less maintenance – In many cases, lawn care and other types of outdoor maintenance are covered in your condo fees
- Smaller size – Condos can be ideal living situations for singles, empty nesters, and small families who don’t need or want to maintain a large home
The biggest difference between buying a condo and a traditional home is the mortgage review process. Legal documents, financial documents, and other aspects of the project will be reviewed to be certain they not only meet with the lender’s criteria but that you, the homeowner, are protected.
A lender will look at several factors when determining whether a condo association is financially healthy enough for the loan to be approved, such as:
- If all planned amenities for the complex are completed
- Percentage of condominium units that are owned by one entity
- Percentage of owners that are delinquent on their monthly dues
- The amount of money in budget reserves and whether the condo association has sufficient insurance
- Whether the condo association faces any pending litigation
All loan requests are subject to credit approval as well as specific loan program requirements and guidelines. With adjustable-rate mortgages, the interest rate is variable and may increase or decrease after the initial fixed rate period based on changes to an index. This could result in an increase in the monthly payment. Geographical restrictions may apply.
Ready to start living the condo life? Contact an Assured Capital Funding mortgage expert in your area to get started.
Ready to start living the condo life? Contact an Assured Capital Funding mortgage expert in your area to get started.
