New Hampshire Condominiums purchased with second home loan…ask the expert.
A great choice for many looking for a family get away is an association managed property; this most often comes in the form of a condominium. But can also be a single family property within a home owners association.
South Peak on Loon Mt, Lincoln NH
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What you need to know when seeking financing:
Fannie Mae is the Quasi-governmental entity that controls the mortgage markets in the U.S. they generally offers the most competitive rates when seeking a property loan. The down side when it comes to condominiums is they sell there note on the secondary market so the property has to be squeaky clean and vanilla in flavor. The risk of putting your eggs in this basket is the Mortgage Originator (your loan officer) will require a condo questionnaire to be completed and reviewed by the underwriting department.
This can take a lot of time if this lender hasn’t completed a loan in this project before…and the pit falls are many.
Deer Park , Woodstock NH
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Issues that can derail a Fannie Mae loan on a condo:
1) If there is an on-site rental program, or if a simple on-line search shows one or more condo owners are advertising their units for a private rental (Air B&B or other sites)
2) If with in the entire master plan project there is any timeshare units with in the association
3) If one owner owns more than one condo and that number exceeds 10% of the total projects gross # of units.
4) Similar to above…if 10% or more are for sale (or) 10% or more are delinquent in their dues.
The Solution…is a portfolio loan. This is not a shady back room loan shark deal. In fact many times your same lender has in-house money they can loan on properties that your bank’s local committee can use to accommodate real estate not qualified for Fannie Mae consideration. The key here is to work with a lender that has both and can switch you to a program that works. If your independent mortgage broker can only place secondary mortgage market loans…please don’t go down that road – you’ll miss the contingency dates and can lose the property or even lose deposit money in a worse case.
Jack O Lantern Golf Resort, Woodstock NH
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Hire Alpine Lakes Real estate to help you buy or sell and condominium, we know what to look for, and can create a smooth transaction for all.
A few other helpful hints when looking at Condominiums:
* ask to review the minutes of the last 2 homeowners meetings, more time than not up coming special project and expenses are a topic of these meetings and a new $10,000 roof is an important factor in buying.
* ask to see the current budget and monies held in capitol reserves for future common area projects under consideration for your condo project.
* Ask about on-site pet policies, as some projects don’t allow pets of any kind, while others allow owners but not renters to have a furry friend.
Forest ridge Lincoln NH
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Call Alpine Lakes Real Estate co Inc. 800-926-5653