Thinking of selling your condo? Read these must-know finance regulations!

One of the most common and tricky hurdles of condo transactions are financing troubles. They can be caused by a variety of factors and unfortunately many times they’re the issue that makes a sale fall apart. Below are some of the most common financing issues:Renter versus Owner Ratio:This is a stat that your Homeowners Association (HOA) should be monitoring. If the percentage of owners renting out their units is too high then many banks will be weary of providing mortgages to that property. Typically they like to see a rental ratio of under 50%.Single Owner Interest:Banks don’t like to see one person or entity owning more than 10% of the units in a community.Commercial Interest:If your community has a portion of that is commercially zoned, banks typically want to see that it is no more than 25% of the community.These are the typical big 3 issues. How to remedy them? Well that’s something that can be tricky in some scenarios and easier in others. It starts with the HOA. They should be aware of these statistics and proactively impose regulations to make sure that they keep the community as “mortgage friendly” as possible.If that has been neglected, then your other hope is that the agent you work with has a network of lenders that can specialize in unique financing scenarios. An agent who is adept at condo sales should have a repertoire of portfolio lenders to navigate these issues.If you have questions, comments, or require lender recommendations please feel free to reach out to us.