Gabriela Islas - Quicken Loans -Albuquerque,
a new home in Albuquerque you have many
things to take into account, such as location,
cost, risk, financing, and more. If you decide
to buy a condominium, some lenders have certain
limitations when financing a condo purchase.
Keep this in mind in order to avoid problems
with your home loan financing.
Here is a list of things you need to avoid
as you shop for your new home. If you encounter
any of the items on this list, it may be wise
to walk away and look for a different home.
Owning a condominium in Albuquerque is great
for those that don’t mind paying HOA (Homeowners
Association) Fees in order to get certain amenities,
such as a pool, gym, lawn care and other maintenance-related
services. On the flip side, condominiums are
also regulated by the Homeowner Association
policies. Some have strict guidelines in terms
of what you can do to the exterior of the building,
such as satellite dish placement or gardening.
Buying a Condo: Ten Things to Avoid
- The project is still under construction.
Some lenders require that the community or
complex is completely finished in order to
- The project doesn’t have 90% of units
sold. Certain types of loans, such as conventional
loans, require that most units in a complex
be sold before the loan is approved.
- The association is still under the developer’s/builder’s
control. Some lenders may require that the
Homeowner Association be under a property
management company, instead of the builder’s
- The complex has hotel amenities. Certain
services such as concierge, front desk, room
service, maid services and short-term vacation
services may hurt your eligibility to get
financing for a condo.
- The Homeowners’ Association doesn’t
have enough money in their reserve account.
The HOA doesn’t put at least 10 percent
of the annual income into a reserve account.
- More than 15 percent of the unit owners
are 30 days or more delinquent in their HOA
dues. This could mean trouble in the future
because if condo owners are delinquent in
their dues, the HOA may not be able to keep
enough money in their reserve account.
- The association has pending litigation.
Lenders will shy away from financing a condo
purchase if there’s litigation against
the HOA. If you’re thinking about buying
a condo, make sure you ask your agent about
any Association issues.
- The association doesn’t carry sufficient
Fidelity coverage. Fidelity insurance is a
requirement to protect the association against
inappropriate use, embezzlement or stealing
of the association funds by the board members.
Lenders need to make sure that there is enough
coverage before they approve a loan for a
- The complex is not FHA approved. This only
applies if you’re thinking about getting
loan to buy the condo. However, even if
you don’t get an FHA condo, it may affect
future buyers who may want to use an FHA
- You’re thinking about renting the
condo in the future and the association doesn’t
allow it. If you’re purchasing a condo
with the goal of eventually using it as an
income property, make sure that the association
Keep these things in mind as you shop for a
mortgage lender for your new home purchase in
order to save you time and stress. If you have
any questions, let us know or contact one of
to Albuquerque Mortgage News