Is Your Building Qualified?

The real estate market has been tough enough this year with the banks tightening up their credit guidelines for borrowers, owners not wanting to lower prices to market, and buyer wanting unrealistic foreclosure prices, but now things have gotten even tougher for us professionals.  We now have to qualify not only our borrowers but the buildings that they are considering.  Some of the potential deal killers for first time buyers seeking FHA, Fannie Mae or Freddie Mac approved bank loans are:

• Too many units in a building being rented and not owner occupied
• Too many units with delinquent HOA fees
• Inadequate HOA reserves
• Too many vacant units
• Pending Litigation
• Deferred maintenance or capital improvements needed
• Too high a percentage of the building being used for commercial purposes

If you are looking for a condo in SF or any other city it is a good idea to use a real estate professional who is familiar with the various buildings and can ask the pertinent questions before you get too far in the process.  This will save you time and money.