15% condo delinquency changes lending requirements

[Chelsea Jean-Mary]

I ran into an interesting issue today. A property has been on the market ~70 days. It looks great. The location is near a food/shopping center and the schools in the area or the best. I went and toured and couldn't see what the issue was. My real estate agent got back to me to let me know that over 15% of the homeowners are behind on paying their condo fees which changes the lending requirements. I believe it requires a higher down payment and no FHA or VA loans are accepted. Just conventional. I imagine this would be a nightmare situation for the seller as it eliminates many potential buyers.

Curious to know if anyone else encountered this or if there's a way around it.