budgeting for home owner association fee?

Question

I am looking into buying either a townhouse or a condo, and I know they come with association fees. In my area they usually run from $150 to $250 per month. I've asked a few questions on here already about buying a home, and I was told that when I get a mortgage I should make sure that it includes property taxes and homeowners insurance. Can that mortgage also include association fees? Or is that completely separate? I'm just thinking that having to budget for the association fees would reduce the amount I can afford to pay for a condo or townhouse. Another question, how can I figure out how much heat will cost me each winter? I've heard most condo associations in my area cost more, but include heat, whereas with a townhouse it costs less, but doesn't include heat. I'd rather have a townhouse, but will the cost of heat and association fees put that out of my reach??

Answer 1

Yep you're right, a more expensive unit with cheaper assoc fees may be cheaper overall than the opposite. You should be able to get a history of the fees, to see how often they raise them and by how much. In my experience it's every few years. They can't be included in your mortgage; they are paid directly to the association. When you find a place you like you should be able to find out from the owner or the utility company what the average utility bill is. I've seen HOA fees of $400 a month!! Yuck.

Answer 2

You will have a lot of problems getting the home association fees included because they vary all over the place. You are more likely to get the condo fees as they should be changed once a year (like insurance.) If you want to get more money in the house, then you should look at places that are not in a association. The exclusion of property taxes and insurance is normally not an option in the early years of a mortgage especially as the mortgage holder wants to be sure they are paid.