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Still no relief for condo buyers in Metro Detroit – financing tough to obtain

September 16th, 2012 · No Comments · Condos in Macomb County MI, tips for home buyers, tips for home sellers

Condo financing in Macomb County MI

Over the last few years as mortgage money has tightened up, one of the  hardest hit casualties has been in condo financing.  When I have a home buyer client able and willing to purchase a condo it can often be an eye opener to them that unless they have cash, or a large down payment, they most likely will not be able to purchase a condo in complex they desire.

The Detroit Free Press ran a good article about this situation this morning.

One of the things I do for my condo buyer clients is to check and see if the complex is HUD approved.  HUD has a site online that tell you instantly if they have certified the condo complex.  You can visit that site here, and search by either zip code, city or county.  If the complex IS approved then you can go ahead and finance your purchase with an FHA mortgage.  If it is NOT approved, then you would have to have a large (20-25%) down payment or pay cash.  Keep in mind that even if you have a large down payment that it doesn’t necessarily mean that your lender will approve the complex. ( Each lender, depending upon who they sell your loan to, will have their own set of criteria that a condo complex and association must meet.)

For condo owners this tightening of the financing market for condos presents a different set of problems.  First, finding a buyer that can pay cash or who has a large enough down payment to obtain financing.  Secondly, this lack of mortgage money has severely limited the pool of condo buyers, making the value of the condos much less than what they would like (or need).

If you have a question about the condo you own, or if you are wishing to purchase a condo and need some guidance as to how best to proceed, please don’t hesitate to contact me.  No pressure, just conversation.

Kris Wales – A partner for your real estate needs in Macomb County MI
Contact Kris – (586)536-5453 cell
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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.