Condo financing can be tricky

So, you have met with one or two lenders, who have reviewed your financing options. You are loan pre-approved and ready to go “condo hunting”, you think. Did you know that lenders have to also pre-approve a condominium complex prior to issuing a loan?  Today, lenders require the homeowner’s association to complete a project questionnaire. The questionnaire not only confirms the number of owner-occupied units but also indicates the number of units in the project with delinquent monthly assessments. If the number of delinquent unitsexceeds 15% of the total number of units in the project, financing of any type may be unavailable. Once you purchase your condo unit, it would be a good idea to join the board of the homeowner’s association to manage and protect your investment.