Condo Buyers Guide - What you need to know

Is buying a condo right for you? Condominiums, or condos, can be an attractive option for homebuyers. Those who feel “priced out” of the homebuying market may discover condos offer a more affordable homeownership option. For some buyers, a condo is a starter home and a place to live for only a few years. While for others looking to take advantage of a condo’s recreational amenities (pools, fitness centers) and low property maintenance (included landscaping), a condo can be a forever home. Buying a condo typically requires compliance with community rules and guidelines that may affect your loan terms. With a single-family home, the lender may only need to evaluate the finances of the borrower and the condition and value of the single property. With a condo, however, the lender must also evaluate the entire condo project’s compliance with certain eligibility requirements. This guide is created to familiarize you with essential terms, key questions to ask, and important obligations to understand before purchasing a condo.