There are a great many little things that can derail a condo purchase but the 5 things I will ask you about are below. Of course the Condo Resale Certification will tell the tale but often you do not have that until you have mutual acceptance on the purchase offer, and someone has paid the many $$ to get it…So let's play a little hide and seek game to gather the information that can impact a condominium deal early on~
1) Whom is the condominium project approved with? - Fannie Mae, FHA, VA (depending on the kind of financing).
2) What is the ratio of Owner-Occupied (OOC) to Non-Owner Occupied (NOO)?
3) What is the percent of owners delinquent on HOA dues?
4) Is the condominium association party to a lawsuit? (suing someone or being sued)
5) Are there any special assessments in place, or pending? … How much are the HOA dues.
Another couple of good things to know going into it:
1. How many units in the Project,
2. Professionally or self-managed?
3. Any Special projects pending? (almost always lead to special assessments, and sometimes lawsuits)
4. How much money is in the reserve account?
Links to the CONDO Projects approval list:
- Fannie -https://www.fanniemae.com/
- FHA -https://entp.hud.gov/idapp/
- VA - https://vip.vba.va.gov/portal/
My lender Cheryl Taylor with American Home Mortgage provided today's guest blog. She has Non Warrantable Condo Money sources available if your condo fails the 5 question test above ~ Please contact me at HomeLandInvestment@gmail.com for more information on buying a condominium in Seattle.