Here are some advantages of condos vs. single-family-homes for VA Home Loan borrowers:
- Condos usually have lower overall prices than single-family-homes
- Affordable condos can often be found in prime neighborhoods and prime areas with good school districts. Areas where prices of single-family-homes are out of reach
- I think this is an important point. You can often find a condo that you could afford in the really prime neighborhoods, beach areas, and great school districts. Where a single-family home in that same area would sometimes be completely out-of-reach. Owning a condo in these types of neighborhoods allows you to enjoy living close to amenities, great schools, beaches etc… Where if you bought a single-family-home for the same price or more you would be in a below average neighborhood with poor schools and less parks, beaches and amenities.
- Condo owners are responsible for less upkeep and less maintenance than owners of single family homes
- With a condo, generally the owner is only responsible for the interior of the condo and the homeowners-association is responsible for all the exterior areas
- This means you don’t have to worry about mowing the lawn, roof leaks, exterior painting, etc…
Here are some dis-advantages of condos vs. single-family homes for VA Loan borrowers:
- Single-family homes can hold their value more
- Although not true in every case, generally single-family-homes go up first in value and go down last
- Condos and Town homes have homeowners association dues
- Condos and Town homes have to be approved by VA in order to use a VA Home Loan to Purchase
Below is some important research for VA Home Loan borrowers to conduct prior to purchasing a condo:
- Make sure the condo is approved by VA. You can find this out by contacting us.
- Find out the percentage of owners vs. renters in the complex by contacting the homeowners association
- Make sure the homeowners association (HOA) is financially sound and has adequate reserves to cover repairs so there are no special assessments. A rule of thumb is 25%-30% of the HOA gross annual income should be in reserves.
- Check with the HOA to find out if there are any pending special assessments. A special assessment is a fee the condo HOA will ask you to pay above and beyond your monthly HOA dues to pay for condo repairs the HOA does not have enough cash for.
- Get a copy of the CC&R’s from the HOA and read them
- Get the latest copy of the HOA’s meeting minutes to review
- Check to see that their is no pending litigation against the HOA or against the builder
- Check to see how HOA dues compare to nearby condors
- How long has the complex been managed by the same company? The longer the better.
- Ask other condo owners what the like most and least about living there
- Check the soundproofing the of the common wall
If you do your research up front you can often buy a condo with a 3.5% down VA Loan that will be a tremendous investment for you and that you will enjoy for years to come. Please contact us to get pre-approved for a VA Home Loan to be ready to purchase your dream condo today.
Rob Chomentowski
Sr. Loan Officer and VA Loan specialist
858-922-7899
rob@affinity-financial.com
www.socalvaloans.com
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