If you’re planning on buying a condo anytime soon, you will most likely have to take out a mortgage. Unless you can pay for the condo with cash (rare), you will have to go through the exact same process as if you were buying a home. Here are three things you should know about condo mortgages:
You Will Have to Pay HOA Dues.
If you aren’t familiar with the term, HOA dues are short for homeowners association dues. If you’re used to renting, these dues will come as somewhat of an unexpected expense to you, so you will need to learn how to budget for them with your monthly payments. HOA dues pay to keep the condo nice and functional for all of the residents; these fees can easily range anywhere from $50 to $500 per month, depending on the cost of your condo.
Costs Can Be Higher Depending on Your Intention and Situation.
If you’re buying a condo as your primary residence and have good credit and income, you will pay pretty fair market rates in terms of your mortgage. However, if you’re buying the condo as an investment property and are going to rent it out right away, you will pay higher mortgage rates. The same goes for situational circumstances, such as putting forth a low down payment, which will ensure that you’re paying some of the highest mortgage rates.
You Can Have Mortgage Assistance.
If you would like to buy a condo but don’t have all of your finances in order to do so, you may qualify for some sort of mortgage assistance to help you obtain the loan and make your monthly payments. One such example of this is the FHA Condo loan, which helps first-time homebuyers to buy a condo.