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Applying for a Condo Mortgage? Don’t Forget the HOA Charges

Tuesday, July 2nd, 2019

Monthly charges, whether condominium or homeowners association (HOA) fees, can make a big impact on a buyer’s ability to qualify for a loan. All HOA charges have the same impact on the debt-to-income ratio. The monthly housing obligation includes principal, interest, taxes, insurance and HOA fees. Condo fees typically cover amenity charges. Real estate taxes are charged separately.  It all gets added up and calculated as debt in the debt-to-income ratio, which helps determine how much a customer can borrow. Lenders have two considerations when a customer wants to borrow for a property with HOA fees. The first is whether […]