Buying a condominium property is a great option for many people. The most common reasons to buy a condo are:
- Folks who want to live in neighborhoods where they may not be able to afford to purchase a single-family home.
- Owner-occupants who do not want to spend time and money on exterior maintenance.
- Investors who want to rent the condos out to tenants.
- Suburbanites who are looking for a second home in the city.
Investors owning condos to rent out is a time-honored tradition. However, it can make getting a conventional mortgage on a condo more difficult for owner-occupants or weekenders looking for a second home/pied-à-terre. Some condo buildings are designated as “non-warrantable” due to the ratio of units that are owner-occupied vs. rentals. It can make getting a mortgage more difficult or just more selective. The regulations can vary from lender to lender and condo to condo.
It is important to know in advance if the unit is warrantable or non-warrantable. You should have conversations with your lender before making an offer. You must know if the building you are looking to buy into is eligible for a conventional or FHA loan. If it isn’t, there *are* loan programs available that your Realtor (AMANDA!) and especially your lender can help you research.
Here are some of the condo communities in Indianapolis that you might love. Call me… there are so many more!
Renaissance Tower (great for investors!)