In addition to conducting proper research, a person can obtain financing for buying a condo by applying for a Freddie Mac or Fannie Mae mortgage, according to Bankrate. Borrowers can also look into financing backed by the Federal Housing Administration or securing a VA loan if they are veterans, notes Money Under 30.Continue Reading
No matter how a borrower intends to secure financing for a condo, he should check his budget to see what he can afford, get pre-approved for financing, find a buyer's agent who has worked with condos in the past, and research the building in which the condo is located, according to Money Under 30. Finding out more about the building helps the borrower know how much the homeowner's association has in its financial reserves, if factors exist that can cause the value of the building to depreciate, and how many of the units in the building are occupied. This is all information lenders usually consider before offering borrowers financing for a condo.
Freddie Mac and Fannie Mae make easier for individuals to secure financing for condos, notes Bankrate. That being said, most condo buildings do not meet the requirements set by either mortgage company. If this is the case, the borrower can seek out a lender who keeps a loan rather than sells it, which is known as a portfolio loan.Learn more about Financial Planning