Jeff Hansen & Arvin Paredes

408-657-9837

Downtown San Jose Condo & Townhouse Living

More Than Meets The Eye

Have you come across eye-catching properties online?

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Most people that are searching online for homes typically do. But buyers beware! Don’t fall too quickly for that “perfect” condo or townhome because sometimes there’s more to it than meets the eye.

When you go house hunting on sites like the MLS (multiple listings service), Redfin, Trulia, etc…what you won’t figure out are a couple things.

1. Is the condo or townhome in litigation?

2. If you have decided to do low down, is the complex FHA (Federal Housing Administration) approved?

The first question is extremely important because if the condo or townhome is in litigation, financing might be challenging. Let’s dig a little deeper shall we? Let’s say that the condo you feel is perfect for you is in litigation. In short, this means that the HOA has sued the builder for defects in the building. During the time that the complex is in litigation, you can only purchase a condo in that building if you are paying all cash. However, there are a handful lenders out there who would be willing to make a loan to a potential buyer. The catch here, is that they require a larger down payment and require that the unit you want to purchase is owner occupied.

Now, if you fallen in love with a mouth-watering townhome that meets all of your needs, you must find out if it is considered “condo ownership” or “townhouse ownership.” If it’s “condo ownership”, then you’ve run into the problem that I noted above about the offer having to be all cash since the complex is in litigation. If it’s “townhouse ownership”, then you don’t really have a huge complication with financing even with the litigation going on, of course, unless cash offers are the only offers they want to accept.

For the second question, these websites won’t typically tell you if the condo/townhome is FHA approved. And remember, the entire complex has to be FHA approved for you to purchase a condo/townhome through this low down program. FHA has guidelines that a complex or any residence for that matter must fall under in order for a buyer to use their low down program.

To get the answers to these two questions for a particular property, feel free to contact me . I’d love to help you out with your home search by saving you a  lot of time. Don’t forget to subscribe!

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