Buying a Condo in Tampa Bay: Financing, HOA Dues and What Lenders Review

Condos are a popular way to own a home in Tampa Bay, from downtown Tampa and St. Petersburg to the beaches. Financing a condo is a little different from financing a single-family home, because the lender looks at the building and the association as well as at you. Here is what Tampa Bay buyers should expect.

HOA and Condo Dues Count Toward Your Payment

Condo association dues are part of your monthly cost of owning the home, and lenders include them when they review your debt-to-income ratio. A condo with a lower price but high monthly dues can end up costing more each month than it first appears. Ask for the dues, and what they cover, before you make an offer.

What Lenders Review About the Building

For many loan programs, the lender or the loan program will look at the condo association itself. Depending on the program, that can include how the association is managed, its financial health and reserves, the share of units that are owner-occupied, and whether there is pending litigation or a planned special assessment. A building that does not meet a program’s guidelines can limit which loan options are available.

Florida Condo Rules Are Changing

Florida has strengthened condo safety inspection and reserve requirements in recent years. That can affect association budgets, dues and special assessments, and it is one more reason to review the association’s documents carefully before you commit.

Ask for These Documents Early

• The association budget and recent financial statements
• Meeting minutes that mention repairs, assessments or insurance
• Details on any planned or pending special assessments
• The condo questionnaire your lender may need the association to complete

Start Early

Because the association has to provide information, condo purchases can take more coordination than a typical home purchase. Getting pre-qualified early gives you a clearer picture of your budget, and it helps you and your real estate agent focus on buildings that are more likely to work.

This article is general information only. Loan programs and eligibility vary, so talk with a loan officer about your situation.

Talk With a Tampa Bay Mortgage Team

Planning to buy or refinance in Tampa Bay, Florida? Explore our home loan options, read the Tampa Bay mortgage FAQ, or start a pre-qualification. Call (727) 888-6650 to talk with Josh Richardson (NMLS #2448184) or Anna Richardson (NMLS #2045806). Company NMLS #2072896.