Can I sell my condo if they only have 5% down?

Asked by Sharan, Gainesville, FL Sun Aug 17, 2014

I have the possibility of selling my condo, but the buyer only has 5%. Does Monticello/Millpond qualify for a 5% down loan?

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3
Ann Ryan, Agent, Doral, FL
Sun Aug 17, 2014
Sharan, call the President of the board, and ask what the downpayment was on prior deals. Many condos have difficulty with financing unless the buyer can make a 25% down payment, which eliminates a few levels of bank scrutiny.
0 votes
Sally Grenier, Agent, Boulder, CO
Sun Aug 17, 2014
If you're working with a Realtor as a Listing Agent, he/she should be in contact with your HOA to get info on financing eligibility, rules & regs, financials, insurance info, bylaws, etc. to give to potential buyers. You need to find out if your condo is eligible for FHA financing (where buyers can put a minimum of 3.5% down). Some are, some aren't. Otherwise, Buyers likely can get a conventional loan with 5% down. Your HOA management company should be able to tell you. If you're not working with a Realtor as a listing agent, you really should be. It's a complicated process and it's not something you should be dealing with by yourself. There are plenty of legal consequences if not done properly.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Sun Aug 17, 2014
FHA loans only require 3.5%. You need to speak to a loan officer, or rather the buyer does. The loan officer will be able to answer the question of if the buyer can get a loan or not. That is your question you need to be asking and a loan officer will be the person that will know, not us.
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