what do i need to know inorder to buy a condo?

Question

i am a first buyer, i plan of getting a condo for about 150,000 and i am wondering if there are any specific questions i should ask my agent and if i get my mom to cosign it for me then will she loose her government support, for example she gets publick insurence since she is not that wealthy but if she cosign the mortgage for me will that be any problem plss.. i make about 600 per month and she makes about 900 per month so the leat i can pay per month is abt 900 for this condo is that fine

Answer 1

You need to know at least the following as a minimum

COST ISSUES:

1) What is the monthly mortgage cost?
2) What is the annual tax (or semi annual)?
3) Are there any special county or state assessments?
4) What are the monthly homeowner association costs? What is the current state of their finances. They should have a substantial reserve to cover projected costs. You are entitled to ask for this information from the seller.
5) Are there any other costs or assessments which are predictable?
6) What is the vacancy rate at the condo (more empty or unsold units = higher association costs?
7) Don't forget insurance. Your lender is going to require a policy that will cover his loan plus you want to cover your investment and belongings. This will be an annual cost.

When you are all done, factor these into a monthly cost.

Can you afford it? If so move on to the next items. If not you already have your answer(s).

USAGE ISSUES:

1) Have you completely read the C.C. &R's that will bind you when you buy the unit? Do you understand them ? (if not go see someone who can explain them without any bias - ie: NOT your real estate agent who has a vested interest in selling you the unit.)

2) Does the association have any posed rules or limitations that have been enacted since the CC&Rs went into effect.

3) Why are the former owners leaving ( no...why are they REALLY leaving ?)
BUILDING ISSUES:

Basic ones... what is the shape of the place. Remember if something needs to be repaired YOU won't get to decide about a lot of it (ie: roof, grounds, painting, etc...) it will be done by the association and you will simply get an assessment that you must pay or lose the unit (in an extreme case). So if the place needs upkeep you need to factor that into your projected costs. If the association has defered a lot of maint. then guess who is ultimately going to have to pay for it?

LIENS: Check the title report for not only the condo unit (the airspace you are buying) but also for the property (the portion that is held in some kind of a common trust). There should only be a typical mortgage. If there are other liens, check them carefully because you are buying into them.

That's the basics.... condos can be good deals or they can be like owning an old boat... a risky proposition. Reading and understanding them up front is the best defense.

good luck... hope it works out for you....

.

Answer 2

With the information you have provided and even if your mother co-signs with you for a mortgage. Even if you could get a mortgage that does not require you to prove income an verify any assets.

You can not afford the condo you plan to purchase.

You will have the following debts for your condo

#1 mortgage pmt @5.99% amortized over 40 yrs $824.28

#2 Home Owner's Association fee (Guess) $112.50

#3 County taxes (guess)$125

This is a total of $1061.78 (Low Estimate)

The above is based on the fact that you have an excellent credit score, and if you have additional debts, that would further put you in a position of not being able to afford the place you want to purchase.

I would suggest you might try a 1-4 unit four-plex with not income or assets if you have the score. You will have the tenants to assist you in paying for your place. You would occupy one. You have a better chance, as some or most lenders will allow the tenants rent to be counted as income, some will only allow a portion.

Contact a mortgage broker in your local area. You will find one listed in your telephone book.

You and your mother would have to make a decision as to her occupying one of the units. Check with the government agency that issue her checks as to if there will be consequences or not if she goes on to the mortgage.

I hope this has been of some use to you, good luck

"FIGHT ON:

Answer 3

you also need to ask about common charges - these are fees that everyone in the condo pays to the Condo Owner's Association for maintenance of the property. But - how can you pay 900.00 per month when you only make 600? and if your Mom only makes 900.00 per month are you sure you can even 1) afford it or even get a mortgage?

Answer 4

I justed moved from a condo which i lived in for 3 years you might want to coniseder the following first.
# 1- Do they have reserves for major rea-pairs-roofs buildings
#2-any major assesments coming up
#3- attend a board meeting to get a feel for the comunity

Answer 5

You should prequalify with a mortgage company. Contact me if you're interested.

Answer 6

You make 600 a month correct. The condo is for 150,000, plus taxes, insurance and association dues (if any) and you would not be able to afford this (sorry) but it is the truth. And with your mom co-signing they will take into consideration her bills,(rent, credit cards, etc) into the deciding factor. Lenders look at your DTI (debit to income factor), plus they look at job time ( 2 years needed), income and credit. Just as an idea your P/I on the above would be 997.93 Principle and Interest only, no property taxes, home owners insurance or association fees. How do you think you are going to afford it.??? Try saving that amount for 6 months, see if you can hold yourself to it, and see how hard it is - not trying to scare you (ok), just being realistic.


You did not say what state you live in. But try out this web site. It is all about the USDA Rural program. Even though it says RURAL, the property does not need to be in a RURAL setting, payment is based on income, job time, and income. BUT payments can be based on your income. Where the government helps you out with your payment.

Welcome to the USDA Income and Property Eligibility Site

http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

1. This site is used to determine eligibility for certain USDA home loan programs. In order to be eligible for many USDA loans, household income must meet certain guidelines. Also, the home to be purchased must be located in an eligible rural area as defined by USDA.
To learn more about a USDA home loan program, click on the Loan Program Basics link on the left side of this screen and select one of USDA's home loan programs.
To determine if a property is located in an eligible rural area, click on the Property Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate property eligibility screen for the Rural Development loan program you selected.
To determine income eligibility of an applicant/household, click on the Income Eligibility link on the left side of the screen and select a Rural Development program. When you select a Rural Development program, you will be directed to the appropriate income eligibility screen for the Rural Development loan program you selected.
To find out how to apply for a Rural Development Loan, click on the Contact Us link on the left side of the screen and then select a Rural Development Loan program.


Rural Housing Direct Loans are loans that are directly funded by the Government. These loans are available for low- and very low-income households to obtain homeownership. Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Mortgage payments are based on the household's adjusted income. These loans are commonly referred to as Section 502 Direct Loans.
2. Purpose: Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility: Applicants for direct loans from HCFP must have very low or low incomes. Very low income is defined as below 50 percent of the area median income (AMI); low income is between 50 and 80 percent of AMI; moderate income is 80 to 100 percent of AMI. Click here to review area income limits for this program. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance, which are typically within 22 to 26 percent of an applicant's income. However, payment subsidy is available to applicants to enhance repayment ability. Applicants must be unable to obtain credit elsewhere, yet have reasonable credit histories. Elderly and disabled persons applying for the program may have incomes up to 80 percent of area median income (AMI).
Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of AMI and who cannot afford 33-year terms). The term is 30 years for manufactured homes. The promissory note interest rate is set by HCFP based on the Government’s cost of money. However, that interest rate is modified by payment assistance subsidy.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Modest housing is property that is considered modest for the area, does not have market value in excess of the applicable area loan limit, and does not have certain prohibited features. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards.
Approval: Rural Development officials should make a decision within 30 days of the Rural Development office's receipt of the application.

Section 502 Guaranteed Loan Program:
1. Section 502 loans are primarily used to help low-income individuals or households purchase homes in rural areas. Funds can be used to build, repair, renovate or relocate a home, or to purchase and prepare sites, including providing water and sewage facilities.
Eligibility:
Applicants for loans may have an income of up to 115% of the median income for the area. Area income limits for this program are here. Families must be without adequate housing, but be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must have reasonable credit histories.
Approved lenders under the Single Family Housing Guaranteed Loan program include:
Any State housing agency;
Lenders approved by:
HUD for submission of applications for Federal Housing Mortgage Insurance or as an issuer of Ginnie Mae mortgage backed securities;
the U.S. Veterans Administration as a qualified mortgagee;
Fannie Mae for participation in family mortgage loans;
Freddie Mac for participation in family mortgage loans;
Any FCS (Farm Credit System) institution with direct lending authority;
Any lender participating in other USDA Rural Development and/or Farm Service Agency guaranteed loan programs.
Terms: Loans are for 30 years. The promissory note interest rate is set by the lender.
There is no required down payment. The lender must also determine repayment feasibility, using ratios of repayment (gross) income to PITI and to total family debt.
Standards: Under the Section 502 program, housing must be modest in size, design, and cost. Houses constructed, purchased, or rehabilitated must meet the voluntary national model building code adopted by the state and HCFP thermal and site standards. New Manufactured housing must be permanently installed and meet the HUD Manufactured Housing Construction and Safety Standards and HCFP thermal and site standards. Existing manufactured housing will not be guaranteed unless it is already financed with an HCFP direct or guaranteed loan or it is Real Estate Owned (REO) formerly secured by an HCFP direct or guaranteed loan.
Approval: Rural Development officials have the authority to approve most Section 502 loan guarantee requests.