Condos have their own set of regulations because lenders view them as a higher risk. Why? As an owner, you rely on other unit owners to maintain their places and pay condo association fees.
If you plan to finance a condo and need a loan in Hampton Roads (like Virginia Beach or Norfolk) you need to know if the condo project/building is considered warrantable (follows guidelines for Fannie Mae, Freddie Mac, FHA, VA, etc.).
If a property is not warrantable, you will have a tougher time with financing.
Examples that make a condo warrantable include:
- 51% of all units in the entire development have owner occupants
- No more than 15% of the current unit owners are delinquent in payment of homeowners dues
- No one individuals/entity may own 10% or more of the units in the condo development
Lenders will require the property manager to complete a condo questionnaire to determine if a condo is warrantable.
If you have other questions about condos in Virginia Beach, Norfolk and Chesapeake, please let me know.
Featured photo: Flickr