How do you go about getting a condo loan in the Washington DC area? Getting a mortgage for a condominium in the Washington DC area has gotten more difficult, as it has for condos in all areas.
An FHA condo loan is easier to get than a Conventional condo loan. There are many rules to remember when you want to buy a condo, but the basic ones to remember to ensure that you get a mortgage are below. For FHA loans:
-the condo building usually must be 5 units or more.
-the building must be at least 51% owner occupied (this is how many units are occupied by primary residents versus investor owned units).
-there can be no right of first refusal in the condo docs.
-the condo should be complete, with no additional phasing.
-no special assessments pending.
-no legal action against condo.
-the HOA must have been in control of the owners association for at least 1 year.
-at least 90% of the units are sold.
-no single entity owns more than 10% of the building.
-adequate insurance and reserve funds in the budget.
Getting a Conventional condo loan is similar to the above, except that you must usually have at least 60% owner occupancy (some banks requires 65% or even 70%).
When a home buyer wants to buy a condo, the bank will not only qualify the home buyer, but they are also qualifying the condominium. So there are more questions to ask when buying a condo, when you want to get a mortgage.