Make sure that the complex meets the criteria for major lenders. If you are getting an FHA loan, your lender will verify that the complex is FHA approved. However, if you are paying cash or getting a conventional loan, you may only discover that the complex is not FHA approved when you are trying to sell it and find out that an FHA buyer can’t buy your condo because the complex doesn’t meet their lending requirements. If the complex is not eligible for FHA or conventional loans with low down payment limits, you may have purchased a condo with a
A4HB Homebuyer's Blog
In addition to recorded covenants, most town home or condominium associations have unrecorded rules and regulations that you will have to live with. You need to review these and make sure you are comfortable with them. It is also a good idea to review the minutes of recent association meetings to familiarize yourself with the issues that are of concern to current owners in the complex.
We noted in our section on Legal Issues that the evaluation process for any real estate that you’re buying requires that you look beyond the physical structure or the land itself to the more abstract legal characteristics of the property you’re buying. When you’re buying a condominium or town home, or any even a single family home or piece of land that is governed by a home owner’s association, you need to be a least one degree more cautious. When you buy this type of property, you’re not just purchasing a piece of real estate. You’re buying into a corporate