Two Levels of Approval
Condo financing can involve two levels of approval:
- The buyer.
- The condominium project.
A buyer can have excellent credit and income yet still encounter financing problems because of the HOA or project.
What Can Lenders Review?
Potential concerns can include:
- Master insurance
- HOA financial condition
- Litigation
- Special assessments
- Owner occupancy
- Commercial space
- Structural concerns
- Delinquencies
- Rental concentration
Why Buyers Need to Know This Early
Imagine: you are fully preapproved, you love the condo, then the lender determines the association insurance does not satisfy the loan program. Your personal qualification does not fix that project problem.
HOA Documents Matter Beyond Financing
Even if a lender approves the project, the buyer still needs to understand:
- Rules
- Dues
- Reserves
- Special assessments
- Rental restrictions
- Pet restrictions
- Parking
FHA and VA
FHA and VA have their own condominium eligibility processes. Conventional financing also has project-review requirements. See the FHA condo guide and the VA condo guide for the current program rules.
How Lisa Helps
Lisa can help buyers identify condo/HOA issues early and coordinate the needed association information with the lender and escrow.
Selling a condo?
Get HOA and financing-sensitive documents organized before a buyer's lender asks for them. Lisa can help you prepare the association paperwork that keeps a condo sale from stalling during escrow.
