Home Buying in Bladensburg>Question Details

Joseph Allen, Home Buyer in 20784

If a community of townhouse owner's are behind on their HOA fee's, how does that constitute selling vacant homes for cash only?

Asked by Joseph Allen, 20784 Mon Sep 3, 2012

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Simply stated, most banks see the neighborhood as a high risk investment if the current owners are not paying their HOA dues or if the majority of the units are rented and not owner occupied. They do not want to loan buyers the money to buy a home in these areas. The presumption is that it's very likely the units not being cared for and maintained because of either financial difficulties or because they're tenants who do not (normally) have the same vested interest in the property. FHA has established an "approval" system for HOA and condo communities. If a community does not meet their approval, they will not back the loan. If FHA won't back it, most other banks follow suit and won't either.
1 vote Thank Flag Link Tue Sep 4, 2012
Hi Joseph,

Jody and Tony hit it on the head. I am assuming you are looking at TH that has comments of cash only for sale. You may need to seek some alternative financing if this is the case. call me if you need any assistance.
0 votes Thank Flag Link Mon Sep 3, 2012
Flag Mon Sep 3, 2012
So if i was to move in, will i still be obligated to pay HOA fees.
Flag Mon Sep 3, 2012
To add to what Jody said , even though it is a townhouse it may be a condo which must have more than 50 % owner occupancy and less than a 15% delinquency rate for condo dues for the past 30 days.
0 votes Thank Flag Link Mon Sep 3, 2012
The problem would be that the community has probably lost it's FHA certification. It would no longer be eligible for FHA backed loans, but should still be able to qualify for conventional financing with some lenders.
0 votes Thank Flag Link Mon Sep 3, 2012
So if i was to move in, will i still be obligated to pay my HOA fees?
Flag Mon Sep 3, 2012
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