Getting a Loan? Buying a condo comes with a few additional lending rules since the overhaul of the lending guidelines a few years ago. Make sure to ask us for more details about specific associations and which ones are in compliance.
To qualify as a condo complex with Conventional Loans (ask for complexes that are FHA approved as less than 20% nationwide are approved for FHA) here are some of the general guidelines from the government who backs the loans:
Must be 51% owner occupied (primary or second homes) This may go lower if the reserves are high enough
No more than 15% of the complex can be past due on HOA dues
No one owner can own more than 10% of the complex
No daily, weekly or monthly rentals
The HOA must meet the reserve requirements and budget review
The HOA must pass insurance review
Every complex may have unique circumstances so it is important to review this with your lender as other guidelines may apply.