Appraisal came in $5k short, run or stay?

[HLS]

If you are expecting to get a loan and a condo cert is required and one hasn’t been approved by an underwriter, you are wasting your time even thinking about buying the place.

Many people qualify as borrowers but the condo complex doesn’t qualify. There are various reasons for this, and it doesn’t matter how high your credit score is or how much you are putting down or how much money you make.

Even an 800 credit score wanting to put 75% down can’t get financing on some condos.

If you are going to pay cash, you can buy whatever you want.
Expect to pay $50 to $100 to get a cert filled out by the mgmt company, and around $400 for an appraisal. You can also be charged $100-$200 to have the lender named as add’l insured on the master policy.

[moneymaker]

If HLS is correct then how do places like this get sold. I’m pretty sure that investors would not buy them. Not many condo buyers pay with all cash, atleast I wouldn’t think so.

[moneymaker]

If HLS is correct then how do places like this get sold. I’m pretty sure that investors would not buy them. Not many condo buyers pay with all cash, atleast I wouldn’t think so.

[moneymaker]

If HLS is correct then how do places like this get sold. I’m pretty sure that investors would not buy them. Not many condo buyers pay with all cash, atleast I wouldn’t think so.

[moneymaker]

If HLS is correct then how do places like this get sold. I’m pretty sure that investors would not buy them. Not many condo buyers pay with all cash, atleast I wouldn’t think so.

[moneymaker]

If HLS is correct then how do places like this get sold. I’m pretty sure that investors would not buy them. Not many condo buyers pay with all cash, atleast I wouldn’t think so.

[HLS]

They get sold for cash, and prices plummet.
In Florida, there are condos that were $200K a few years ago that were recently $30K-$40K.

I knew someone that wanted to give a damaged unit away, just to get rid of it. The monthly assessment was up to $600+ a month, and it had been hurricane damaged.

There are local condo complexes that are headed for trouble, especially conversions.
There are lots of foolish “investors” who have more money than brains. Some things never change, greed is one of them.

It’s also harder to finance a condo bought as a rental property vs. primary residence.

[HLS]

They get sold for cash, and prices plummet.
In Florida, there are condos that were $200K a few years ago that were recently $30K-$40K.

I knew someone that wanted to give a damaged unit away, just to get rid of it. The monthly assessment was up to $600+ a month, and it had been hurricane damaged.

There are local condo complexes that are headed for trouble, especially conversions.
There are lots of foolish “investors” who have more money than brains. Some things never change, greed is one of them.

It’s also harder to finance a condo bought as a rental property vs. primary residence.

[HLS]

They get sold for cash, and prices plummet.
In Florida, there are condos that were $200K a few years ago that were recently $30K-$40K.

I knew someone that wanted to give a damaged unit away, just to get rid of it. The monthly assessment was up to $600+ a month, and it had been hurricane damaged.

There are local condo complexes that are headed for trouble, especially conversions.
There are lots of foolish “investors” who have more money than brains. Some things never change, greed is one of them.

It’s also harder to finance a condo bought as a rental property vs. primary residence.

[HLS]

They get sold for cash, and prices plummet.
In Florida, there are condos that were $200K a few years ago that were recently $30K-$40K.

I knew someone that wanted to give a damaged unit away, just to get rid of it. The monthly assessment was up to $600+ a month, and it had been hurricane damaged.

There are local condo complexes that are headed for trouble, especially conversions.
There are lots of foolish “investors” who have more money than brains. Some things never change, greed is one of them.

It’s also harder to finance a condo bought as a rental property vs. primary residence.

[HLS]

They get sold for cash, and prices plummet.
In Florida, there are condos that were $200K a few years ago that were recently $30K-$40K.

I knew someone that wanted to give a damaged unit away, just to get rid of it. The monthly assessment was up to $600+ a month, and it had been hurricane damaged.

There are local condo complexes that are headed for trouble, especially conversions.
There are lots of foolish “investors” who have more money than brains. Some things never change, greed is one of them.

It’s also harder to finance a condo bought as a rental property vs. primary residence.

[4plexowner]

lenders continue to dis-favor loans on condos even for owner-occupied units

Fannie recently changed the rule on the number of units that any one owner can have in a given complex

the rule, as I understand it, applies to 10 units and less – a few months ago a single owner could have no more than 49% of the units and now can have no more than 10% of the units (ie, could own 4 units before the change and can only own 1 now)

look at how that affects the other owners in the complex – if any single owner has more than one unit, NOBODY in the complex is eligible for Fannie loans

I believe the dis-favoring of condo loans is a trend and something that all condo buyers should consider – the value of condos decreases as loans become harder / more expensive to obtain

[4plexowner]

lenders continue to dis-favor loans on condos even for owner-occupied units

Fannie recently changed the rule on the number of units that any one owner can have in a given complex

the rule, as I understand it, applies to 10 units and less – a few months ago a single owner could have no more than 49% of the units and now can have no more than 10% of the units (ie, could own 4 units before the change and can only own 1 now)

look at how that affects the other owners in the complex – if any single owner has more than one unit, NOBODY in the complex is eligible for Fannie loans

I believe the dis-favoring of condo loans is a trend and something that all condo buyers should consider – the value of condos decreases as loans become harder / more expensive to obtain

[4plexowner]

lenders continue to dis-favor loans on condos even for owner-occupied units

Fannie recently changed the rule on the number of units that any one owner can have in a given complex

the rule, as I understand it, applies to 10 units and less – a few months ago a single owner could have no more than 49% of the units and now can have no more than 10% of the units (ie, could own 4 units before the change and can only own 1 now)

look at how that affects the other owners in the complex – if any single owner has more than one unit, NOBODY in the complex is eligible for Fannie loans

I believe the dis-favoring of condo loans is a trend and something that all condo buyers should consider – the value of condos decreases as loans become harder / more expensive to obtain

[4plexowner]

lenders continue to dis-favor loans on condos even for owner-occupied units

Fannie recently changed the rule on the number of units that any one owner can have in a given complex

the rule, as I understand it, applies to 10 units and less – a few months ago a single owner could have no more than 49% of the units and now can have no more than 10% of the units (ie, could own 4 units before the change and can only own 1 now)

look at how that affects the other owners in the complex – if any single owner has more than one unit, NOBODY in the complex is eligible for Fannie loans

I believe the dis-favoring of condo loans is a trend and something that all condo buyers should consider – the value of condos decreases as loans become harder / more expensive to obtain

[Author]

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