Did You Know There is a 15 Percent Rule for Buying a Condo?
When you embark upon the buying or selling process for a condominium, your fellow unit owners have a lot to do with your ability to obtain a loan. HUH? Yes, you read that right.
There are two ways that the ability to obtain financing can be affected by your fellow unit owners.
1. How many units are owner occupied? Most lenders will not finance a unit if more than half of the units are occupied by tenants, and some lenders won't finance a loan if more than 30 percent of the residents are renting, so if enough of your fellow unit owners have opted to lease their respective units, it may affect you.
2. ... and the biggie- If more than 15 percent of unit owners are delinquent in paying their common charges by 60 days or more, it is virtually impossible for you to obtain a loan on that property. NOTE: exceeding that percentage is not all that common, but it does happen, especially considering the economy that we have experienced over the last few years.
3. If one person, (or one entity) owns more than 10 percent of the units that may also be of concern to the banks.
Also, important- If there is one or more lawsuits pending against the complex, that can also present an issue.
Have a question as to whether the condo that you are interested in buying or selling could have any of these issues? Call me- if I am your agent, you are all set, and should have no worries- that's all standard operating procedure with me to find out this information for all of my clients.
Sellers, take note, too. This absolutely and without a doubt affects your buyer pool.
Call me if I can be of assistance (203) 257-5892
Buying or Selling a Condo in Fairfield County? Contact us!
If you have a question about buying or selling Real Estate in Fairfield County, and are in need of representation, I invite you to contact me. I know the market like the back of my hand, know marketing inside and out, am a skilled negotiator- and I'd love to be on your side :) - Judy
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