- Most condo complexes have a limit on the number of unit or which units can be rented. There are a couple reasons for this, but the main one is financing.
- If too many units are rented out, Freddie Mac and Fannie Mae, who make conforming loans, will not lend money on units in that project. So to purchase a unit in a condo project that has too many rentals, you end up having to go with non-conforming financing which is harder to come by and usually has a higher interest rate.
- FHA also has rules for condo projects. To buy a condo with an FHA loan, the condo project must be FHA approved.
- If you plan on renting the unit out, make sure the HOA will allow that before you buy.
If your plan is to move from one home to another, just putting your home on the market isn’t enough. Your home will need to be ready to show and you’ll need a strategy to accomplish the sale and purchase of another home in a reasonable time frame.
With 10 years selling homes in metro Salt Lake and 20 years in the real estate business, I have many strategies and an in depth understanding of what it takes to help you sell and buy another home. Call or email me if you’d like to take advantage of this opportunity!
Contact SLCHomeBuyer and Kevin Coyle