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.

[Chelsea Jean-Mary]

Originally posted by @Courtney King:

@Chelsea Jean-Mary I ran into this on a listing I had in Dallas. Unfortunately there's no way around it unless you go through a private lender. I would certainly caution you (as I would any client) as this may affect future resale; making it potentially challenging for you to unload it in the future.

Exactly. There is a clear reason why they're selling. And it's definitely a sign of trouble to come! That's so unfortunate because it's a lovely property and appeared to be well-maintained.