If you’re thinking about refinancing the mortgage on your condo, it’s not exactly the same as a single-family home. With a condo, you have two sets of loan guidelines. 

The first applies to you specifically, while the other applies to the condo owners’ association. Your owner’s association becomes a third party in the loan refinancing process. 

This is where your neighbors come into play. You won’t want many non-owner occupied rental units or foreclosures in your complex. 

It’s also important that your association’s financials are in relatively good shape. The lender will likely require a condo questionnaire that takes these things into account.

Another thing to consider is the amount of equity you have, which is usually determined by an appraisal. You’ll likely need appraisal comps from other units in your complex to help determine the value of your condo.

Yet another consideration comes into play when you no longer live in the condo you want to refinance. In this case, your loan is considered an investment refinance, and you’ll likely see a higher interest rate.

Are you planning to buy a home or condo in Chicago? Get pre-approved for a home loan with our Chicago lending expert at BHHS Prosperity Mortgage. The application process only takes a few minutes and will help give you a better idea of what to search for during your Chicago home or condo search!

Posted by Helaine Cohen on
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