New buyers purchasing condos/townhomes/lofts!

Hi!

If you have been thinking of purchasing a loft/townhome/condo, please be careful! Many buyers are putting in offers on those types of homes only to find out that they can't get the financing that they need. Please don't let this happen to you!

For example, if you are thinking of purchasing a loft/condo/townhome, have your agent make sure that the community can be sold with your chosen lender.

If you are doing an FHA loan, you need to make sure the community is FHA approved so you do not spend $ on your home inspections and appraisals (non-refundable buyer costs). You can find out if it is by going here:

https://entp.hud.gov/idapp/html/condlook.cfm

If the community does not show 'Approved' you may find yourself wasting a lot of time and heartache into a property.

You can always try to do a spot appraisal, costing anywhere from $70-$400, in addition to your regular lender appraisal, to find out if the community will be able to go FHA. Basically, as I understand it, FHA/HUD does not want over 10% exposure in any one community. Lenders are also sensitive to the amount of rentals/non-occupants in a given community.

If you are doing a Conventional loan, this topic can be important to you as well. There are communities throughout the valley that are considered "non-warrantable". These communities often times have to sell for cash or possibly finance through the original lender who financed the project in the first place.

Aside from if you can get financing for a new purchase, you need to think about this for future resale value. If the majority of buyers are using FHA in this market, as much as 70%, then you have a limited buying pool for the future. Also, if buyers have to use a specific lender and put 10% down+, that could also hurt your resale value as well.

If you have questions about navigating through this current market let us know! We will ensure we protect your interests!