A Long Beach condo can be a great option for someone who doesn’t want to deal with some aspects of homeownership, such as yard work and tons of upkeep. The value of condos took a serious blow during the downturn. and condo prices continue to fall behind single family homes. As a Long Beach home buyer, this means that you can purchase a Long Beach condo for less than you might have thought.
However, because of special rules governing mortgages for condos, it can be harder to get bank approval. The bank not only evaluates the buyer’s credit worthiness for a condominium mortgage, it also evaluates the condo association, and having the right mortgage lender to guide you through the process can make all the difference.
When you’re pricing a Long Beach condo, be sure to factor in condominium association fees. These fees go to keeping up shared areas, such as the grounds and the outsides of buildings. Sometimes the fees include homeowner’s insurance for the building itself, but not for the inside of the unit. In that case, you’ll have to buy supplemental insurance and this will be taken into account when the bank calculates your ability to pay and be approved for a loan.
If you’re considering a Long Beach condo, one of the most important things to determine is whether the property is approved for FHA, Fannie Mae, or Freddie Mac mortgages. If it is, there are still some special rules for condominiums. For example, no more than 10% of units may be owned by the same entity, like a developer that found buyers for the condos. Some of the requirements for condos can be waived if you’re willing to buy one that’s been foreclosed, however.
Be sure to educate yourself on the special rules for getting a mortgage for a Long Beach condo, or better yet, call me to get expert advice. Weigh the pros and cons with your needs and lifestyle. You can also apply online here in minutes to get pre-approved and start your path towards Long Beach condo ownership.
