With affordability still a challenge for many homebuyers, condos can look like an attractive, lower-cost alternative to a single-family home.
And they can be a great option—but buyers and sellers should take a closer look before assuming a condo is a bargain.
New and changing condo financing guidelines could impact which properties qualify for conventional financing. Key areas include:
- Higher HOA reserve requirements
- Updated insurance requirements
- More extensive condo project reviews
- Potential increases in HOA dues or special assessments
Why does this matter? Because financing availability directly affects the pool of potential buyers. If a condo project becomes difficult to finance, fewer buyers may qualify—and fewer buyers can mean less demand and potentially lower property values.
Condo eligibility can also change over time. Issues such as insufficient reserves, delinquent HOA payments, insurance concerns, or pending litigation can impact a project's ability to qualify for financing.
Considering a Condo?
Tap the brakes and do a little extra due diligence. Before buying or selling, understand the financial health of the HOA and whether the property meets current financing guidelines.
A lower price may look appealing, but knowing why it’s priced lower—and whether financing could become an issue—is an important part of protecting your investment.
(click here for a link to a summary of the changes)
Thinking about buying a condo? Let’s talk before you make an offer.
Jay Atterstrom
📧 [email protected]
📞 (214) 377-0033