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Macomb County MI real estate blog

Condo purchasing in Macomb County with a conventional mortgage

July 1st, 2010 · No Comments · Condos in Macomb County MI, tips for home buyers

So many changes in the mortgage industry, so much to keep up with. This is why I ask questions so often of my trusted mortgage lenders in the area.  What may have been true last week might have changed this week.

As anyone who has purchased a condo over the last few months, or has attempted to purchase one has discovered, there are new rules and hoops to jump through.  If you are using an FHA mortgage the “spot approval” is gone, and the whole condo complex must now be HUD approved.  Not fun. Certainly not a quick undertaking.

What happens though to those who want to purchase a specific condo and the complex cannot be HUD approved?   Cash or a conventional mortgage would be the options.  As conventional mortgage rules have also changed greatly over the last year, it was nice to hear from someone yesterday who is in the mortgage industry and works heavily in the Metro Detroit area.

Here is what Drew Sygit of The Lending Edge team at First Michigan Bank had to tell me about purchasing a condo using a conventional mortgage:

  • Minimum 680 FICO Score
  • 10% down
  • No entity can own more than 10% of the units
  • No more than 15% of condo owners can be behind on their dues
  • No more than 10% can be rented
  • If new construction, 70% must be sold and no further phasing

This is terrific news! I’ve heard so many horror stories from other agents about their buyer clients needing 20% or more as a down payment for a conventional mortgage when purchasing a condo.  It’s nice to hear from Drew that he can obtain financing for a condo buyer with only 10% down.

If you want to call Drew Sygit you can reach him at248-356-3739

~Kris Wales~  A partner for your real estate needs in Macomb County MI
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Important copyright information: All photos were taken by Kris Wales. Do not copy and use photos for your own use, whether it be for personal or commercial purpose. All articles were written by Kris Wales. Once again, do not copy and use for your own purposes. Important disclaimer: Views expressed on the blog by the author and commenters do not express the views of Keller Williams Realty. All information contained is deemed to be reliable at the time of posting but not guaranteed.