May 20th, 2013 1:04 PM by Michael and Jill Kohler
A condominium offers man advantages of home ownership with fewer of the hassles, unless you are talking about getting a mortgage for one.
Mortgages for condominiums have special rules that don’t apply to other types of home loans. Some of these involve the different fees that must be paid for a condo mortgage, while others raise the bar on qualifying for the mortgage itself.
Condominiums offer some very good deals right now, however there has only been a slight recovery in the housing market and many condominium prices now lag behind that of single family homes. That can be bad news for you. Although you may be getting a lower price, the bad news is lenders may be less likely to approve your mortgage in a market when the condo values are weak.
When you buy a condo, not only do you have to be approved for the mortgage, the condominium association has to be approved as well. So if the complex’s finances are not in good shape, the lender is going to take a pass.