When buying a Boston condo, it’s important you understand that your buying a portion of a building and you’ll have to obey the condominium rules. Below are some points you must keep in mind.
Which makes more sense for me: Condo or Single-family home
Should I you Buy a Condo or a single-family home? Purchasing a Boston condo is different than owning a single family home and you must fully understand the difference.
Condo Fees and Condo Associations
The big difference? The big difference between a condo and a single family home is the type of ownership, the proximity to your neighbors and the community style of living.
Another major difference is the monthly condo fees. In downtown Boston this could be a thousands of dollars a month that you need to budget for.
Condo fees can also impact whether a Boston buyer can afford the condo or not. When approving a buyer, a lender is going to add the association fee into the monthly debts of the buyer. If a condo community has a very high monthly fee, it’s possible a buyer cannot afford it, due to the high fee
Review Association Rules
Along with condo fees, the condo association will have rules and regulations. Boston condo buyers should review the condos association rules with their attorney. Also check to see if there is enough n the reserves.
Ask About Special Assessments
If money is lacking in the reserves a special assessment will be needed. A special assessment is typically a large fee that is charged to cover a significant project for the condo complex.
Why is this an important tip for a first time condo buyer? If a special assessment is in the future plans, it’s possible that the association fees will need to raise money for the project that could costs thousands of dollars.
Obtaining a Mortgage
Obtaining a mortgage is harder for a Boston condo over a single-family home
For Boston condos obtaining a FHA (Federal Housing Administration) mortgage, you must make sure the condo association is meets all the requirements, such as owner occupancy. Normally FHA requires that 80% of the units in the building are owner-occupied,If not, it will be difficult to purchase without at least 20% down.
For more information contact Ford Realty Inc at 617-595-3712
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