Steven GrossmanNew Jersey And New York Mortgage Officer NMLS#: 36571
Contact me firstname.lastname@example.org
Condo living provides many benefits and there are plenty of buyers are looking to enjoy or invest in an amenity filled community lifestyle. During these tumultuous times here are some things to keep in mind regarding condominium communities and mortgage financing.
MOST IMPORTANT: Protecting Homeowner Investment & Community Worth
It behooves all residents to stay up to date with HOA fees to keep their community in good standing in order to secure the maximum value of their investment. Home Owner Associations and owners equally want to safeguard their real estate assets by preserving the equity of each unit and the entire development.
Keeping Communities Safe & Well Maintained
When working with sellers, buyers or investors, it’s a good idea to remind them that keeping current with HOA fee payments is essential. When finances are precarious it is tempting to skip a fee, but if many neighbors have the same inclination, the entire neighborhood can suffer as maintenance may be interrupted or scaled back, creating potential safety concerns or aesthetically unpleasing upkeep. Homeowners and realtors alike strive to present listings in the most appealing light to obtain the properties’ optimum worth.
The Mortgage Effect
Having a significant number of owners in HOA fee arrears within a community adversely affects everyone. For instance, “approved” developments (per Fannie, Freddie & FHA guidelines*) may lose their status if 15% or more residents fall behind on fees.
Why is this important? By losing a positive evaluation, a substantial pool of potential buyers is eliminated.
Subsequently, as your lending partner, I cannot offer these popular financing options to borrowers looking to purchase in a community marked with an imperfect status. Also, during the mortgage process, if a condo questionnaire is required, HOA fee data will be revealed and potentially obstruct a transaction.