Posted on: 04th Jan, 2011 12:03 pm
I am supposed to go to settlement next Tuesday on a condo in Maryland. I only have 3.5% for the down payment. My credit score is 700+. I have been approved for the FHA loan, and everything was good to go. Then...I get a call today from the lender saying that they have finally received word from the condo association. The community is 20% in arrears for the condo fees. My lender and my agent are frantically trying to figure out what to do, hoping that it is only because of the holidays and it will turn around shortly. But my agent advised me to look at non-fha loans. The problem is, I am pretty much set in the 3.5% for the down payment. Is there any other loan out there that I can try? I definitely want to stick with a fixed rate loan.
Hi austriadavis,
Conventional loans are available at a down payment of 20%. However, still you can try getting a conventional loan. But with a 3.5% down payment, you'll have to go for a private mortgage insurance.
Thanks
Conventional loans are available at a down payment of 20%. However, still you can try getting a conventional loan. But with a 3.5% down payment, you'll have to go for a private mortgage insurance.
Thanks
Austria, the condo association should be a warning flag to you, it is to FHA.
If more than 20% of the homeowners are delinquent on their HOA fees guess who will end up paying the freight, in terms of higher association fees, further declining property values etc? You will.
Most of the other loan programs available have more stringent condo guidelines than FHA.
Good luck!
If more than 20% of the homeowners are delinquent on their HOA fees guess who will end up paying the freight, in terms of higher association fees, further declining property values etc? You will.
Most of the other loan programs available have more stringent condo guidelines than FHA.
Good luck!
FHA is the option for 3.5% down on a condo.
You cannot get a good price in a bad condo association.
I would have a very honest discussion with your real estate agent.
I cannot think of one good reason to put someone into an association that is falling apart. Let's just say that you are getting a "great price"--say 10, 20, 30, 40, 50% less than what everyone else paid.
That actually makes it more likely that another....and another...and another...may find a good reason to go into arrears on dues and walk away. Your value is tied to the condo association---right now it is the Seller's problem. I don't think getting a Realtor/lender their commission is a good enough reason for you to take on the problems of the Seller.
$0.02,
You cannot get a good price in a bad condo association.
I would have a very honest discussion with your real estate agent.
I cannot think of one good reason to put someone into an association that is falling apart. Let's just say that you are getting a "great price"--say 10, 20, 30, 40, 50% less than what everyone else paid.
That actually makes it more likely that another....and another...and another...may find a good reason to go into arrears on dues and walk away. Your value is tied to the condo association---right now it is the Seller's problem. I don't think getting a Realtor/lender their commission is a good enough reason for you to take on the problems of the Seller.
$0.02,