Important Info To Know When Buying A Condominium
This information is very important for you to understand. I hear a lot of people wanting to know whether a condo is FHA approved or not, put 25% down on a primary residence, or do the Fannie Mae HomePath loan so that they don’t have to worry about what is wrong with the condo project. It is not just about being able to get financing on a condo. It is about whether this is something a borrower should be buying. What I mean by that is if you have a condo that can get approved for financing because the bank does not need to get info on the condo project, that doesn’t mean they should buy it. If the delinquencies are high, they don’t have reserves, and many other items, the buyer is most likely going to get hit with assessments down the road, it affects the marketability of the condo, and the value of the condo.
A lot of people will not look out for the buyer’s best interest and that is why it is so important to know this and/or use someone who will take care of this for you. Some of this will change on November 2nd, 2009 when FHA starts to review these condo projects again (some haven’t been reviewed for years) update their list, and/or you have to get a full approval.