Condo Association vs HOA

[Louis Mannikko]

Hey Everyone, 

Talked to my mortgage broker today to see what kind of property i would qualify for with a conventional mortgage, and she said something that I wanted to verify with everyone.

A couple of properties I am looking at are Condos, and they have an association fee associated with them.

My broker pretty much cut me off and said, any unit that is part of a "Condo Association" will not qualify for a convention mortgage on an investment property. If its a HOA, thats fine, but its all in the wording of the association, if it says Condo Association, its a no go, if it says Home owners Association, its perfectly fine.

Just curios, has anyone else heard of this?  Any more information as to why that is the case?  She said it had something to do with rights of ownership that the banks didn't like.

Thanks in advance for your time!!