Financing Your Condo, Co-Op, or Townhouse

Financing Your Condo, Co-Op, or Townhouse

5.0 1
by David Reed
     
 

You’ve been dreaming of a place to call home, and acquiring a condo, co-op, or townhouse seems like an ideal solution. You might think that buying one of these properties is less complicated than buying a house, but the reality is that finding financing can be much more challenging than you can imagine. These loans come with

See more details below

Overview

You’ve been dreaming of a place to call home, and acquiring a condo, co-op, or townhouse seems like an ideal solution. You might think that buying one of these properties is less complicated than buying a house, but the reality is that finding financing can be much more challenging than you can imagine. These loans come with their own set of terms, and are often so complex that even the most knowledgeable loan officers don’t understand them. If you’re a first-time buyer, there are a host of issues that can blindside you, making paying for your dream home seem daunting. And if your potential purchase doesn’t meet your lender’s stringent guidelines, then you’ll pay a higher interest rate, perhaps put more money down . . . or not get financing at all.

As a veteran mortgage banker and author of Mortgages 101, David Reed has helped thousands of buyers through this complicated process. Financing Your Condo, Co-op, or Townhouse offers you crucial advice, including information on developer financing, specialty loans, refinance loans, ways to streamline the approval process, appraisals, and closing costs.

This easy-to-understand guidebook explains: the key differences between condos, co-ops, and townhouses • how to find the right type of property for you • the rules governing loans for condos, co-ops, and townhouses • how to evaluate which loan type is best for you and lock in the lowest rate • why the percentage of owner-occupied units is important • what to look for when buying from a developer • how to benefit from government programs for condos and townhouses • and much more. Filled with sample monthly payment schedules and an invaluable glossary of terms, this book will help you find the home of your dreams, at a price you can afford.

David Reed is the author of several books including Mortgages 101, Mortgage Confidential, The Real Estate Investor’s Guide to Financing, and An Insider’s Guide to Refinancing Your Mortgage. As a senior loan officer, he has closed more than 2,000 mortgage loans. He is a columnist for Realty Times.

Read More

Product Details

ISBN-13:
9780814480625
Publisher:
AMACOM Books
Publication date:
06/24/2009
Edition description:
New Edition
Pages:
240
Product dimensions:
5.90(w) x 8.90(h) x 0.80(d)
Age Range:
18 Years

Table of Contents

CONTENTS

Preface vii

Chapter 1 Condos, Co-ops, and Townhouses: How Are They Different and How Are They Similar? 1

Condos 2

Co-ops 5

Townhouses 6

The Lifestyle 9

The HOA 12

Lawsuits, Fees, and HOAs 15

Chapter 2 What to Look for in a Property and How to Find the One That’s Right for You 17

Using a Realtor 18

Buying from a Developer 21

Chapter 3 Financing Your Condo, Co-op, or Townhouse the Right Way 29

Fixed-Rate Mortgages 30

Adjustable-Rate Mortgage 36

The Hybrid 39

Option ARMs and Negative Amortization 42

How Mortgage Rates Are Set 44

How Lenders Set Their Rates 47

Types of Mortgage Lenders 48

How to Find the Best Loan Officer 57

How to Find the Best Rate 62

Factors That Can Affect Your Rate Quote 71

How to Change Mortgage Companies Midstream 77

How to Lock in the Mortgage Rate 79

Debt Ratios and How Lenders Calculate Them 83

Chapter 4 Specialty Loans, Government Programs, and Refinance Loans 85

Interest Only 85

Equity 87

No Money Down 88

Government Bond Programs 89

Portfolio 90

Refinancing 91

Government Programs for Condos and Townhouses 104

Down Payment Assistance 113

Chapter 5 Rules Governing Loans for Condos, Co-ops, and Townhouses 115

Warrantable Versus Nonwarrantable Projects 122

Chapter 6 The Impact of Credit on Your Ability to Buy a Condo, Co-op, or Townhouse 127

Check Your Credit First 132

Find Out Your Credit Scores 136

Credit Score Facts and Fallacies 143

Credit Scores and Qualifying 147

Repairing Credit 149

Alternative Credit 155

Bankruptcies and Credit 156

Subprime Mortgage Loans 158

Chapter 7 Closing Costs: What They Are and How to Negotiate Them 161

Appraisal 162

Credit Report 165

Application Fee 165

Tax Service 166

Flood Certificate 167

Lender Fees 167

Mortgage Broker Fees 168

Settlement or Closing Fee 168

Title Insurance 169

Document Fees 170

HOA Fees 171

Attorney Fees 171

Courier Fees 172

Government Fees 172

Prepaid and Nonprepaid Items 174

Good-Faith Estimate 175

Using the Annual Percentage Rate to Compare Lenders 179

Negotiating Closing Costs 182

Fees and Refinancing 184

No–Closing Cost Mortgage 185

Appendix: Monthly Payment Schedules 187

Glossary 193

Index 221

Read More

Customer Reviews

Average Review:

Write a Review

and post it to your social network

     

Most Helpful Customer Reviews

See all customer reviews >