If you’re buying a condo for sale in DTLA, you need to know that financing one is a lot different from financing a single-family home. Even if this isn’t the first condo you’ve purchased, here’s a quick refresher that can help you understand how financing a condo is different from financing a single-family house.
How is Financing a Condo Different From Financing a House?
Financing a condo requires you to do many of the same things you’d have to do if you were financing a house. You need a decent credit score to qualify, and your lender will require an appraisal. (You’ll also want to have the home inspected, but that’s another story.)
If you intend to use certain types of loans, you’ll need to make sure that the condo building you want to buy into is on the approved community list. That’s particularly true for FHA loans; your building must be on this list. Sometimes approval for those loans hinges on the how much of the building is owner-occupied.
You also need to have a significant down payment to buy a condo. Some lenders require 20 percent down, although there are exceptions. Remember, too, that the more you have to put down, the less you have to borrow from a bank (and the lower your monthly payments will be).
Are You Buying a Loft or Condo in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale