Buying a Condo in the Denver Area
If you are looking for a low-maintenance, more affordable option than buying a single family residence, then a condo may be the right choice for you. A condo is any property where you essentially don't own the ground that the property sits on, you only own what is within the walls of the unit.
However, it is important to keep in mind the overall cost of a condo before making that decision. Although you will save quite a bit on property maintenance and homeowner's insurance, all condos have homeowner's association fees which will add to the monthly cost. Some HOA fees can be high, especially in more popular areas such as downtown Denver, or in the ski resort areas.
However, the price of a condo in comparison to a home with the same square footage and number of bedrooms is usually lower. You may also be able to afford a better location such as owning a home in a busy urban part of town, or at the base of a ski mountain, instead of having to settle for something farther outside of where you would prefer to be.
The RJ Baxter Team can finance most condos with a few exceptions that are important to keep in mind:
Condo-hotels or Condotels:
Condotels are condo projects where there are features that are similar to a hotel such as a front desk and daily rentals. These are very common in ski resort areas. If you are considering condos that would be classified as condotels, we are not able to help you, and you should seek a niche lender who works with condotel financing.
Non-warrantable condos are condos that fall outside of conventional condo guidelines. There are quite a few questions that will be asked of the HOA in the form of a condo questionnaire, which will be sent to the HOA to fill out as part of your loan process. Common reasons why a condo may be non-warrantable are that there is a high concentration of rental properties in the complex, that there is a lawsuit happening with the HOA, or that there is a high percentage of home owners who are delinquent on their monthly HOA dues.
We can finance non-warrantable condos under certain circumstances. The best situation is if you are going to occupy the property as your primary residence and are putting at least 20% down.
To find out what you qualify for, or to obtain a mortgage pre-approval, give us a call in the office at 303-670-0137 or email us at firstname.lastname@example.org.