I’m sure you’ve noticed the hot condo market in Austin. You can’t drive anywhere in Austin without seeing a new condo development under construction. Condo are a hot commodity in Austin! Not to mention the “condos” coming up in East Austin (78702). Condos are appealing to buyers because they require less upkeep (no yard work!!), closer to work and entertainment districts, they’re in more walkable areas. With all the crazy traffic in Austin, people want to avoid having to drive everywhere so the perfect solution is a condo in a community that you can walk to most places.
I talked to my friend and condo financing expert, Todd Turlington, about what Buyers need to know about financing a condo. Condo financing is not the same as financing a single family home – the federal government has more strict guidelines for financing a condo. So you need to work with an experience Realtor (like me!) that knows how to find the right condo for you and a lender that know all the ins and outs about securing the best type of financing.
Here’s are some condo financing issues:
- If mostly renters live in the complex, that could affect the amount of downpayment you are required to put down.
- If 1 person owns 10% of the units in the condo complex, you can’t get financing in this complex.
- If the condo complex has more than 20% commercial space, you can not get financing.
- How the HOA manages their operations budget could affect the amount of downpayment you are required to put down.
- 98% of condos are not FHA Approved.
- Any lawsuits pending on the condo project must be documented and reviewed – lawsuits can block financing.
- New construction projects must have a certain percentage of units in a phase pre-sold or under contract before any can be closed.
- Hotel type condos (like at the beach) are more difficult to finance.
Clear as mud? Seems like too much to take into consideration? Don’t worry, we got this! Let us help you! Click here for more info