Depending on what part of the country you live in, you may be interested in purchasing an apartment or condo to live in. These living arrangements can be much more convenient and realistic for many people who want to live in the city but also want to be homeowners. So, the question is can you get a mortgage on an apartment or condo purchase?
In past years it was much more difficult to get a mortgage loan on apartments and condos. Because many condos and apartment buildings become run down when times get tough, thanks decided that they didn’t really want to loan their money to people in order to purchase these.X became hard for people in the real estate market as well. Beginning real estate agents really push these big purchases because they were good commissions. Over the years however, things have become much more reliable and banks have started to give loans back to people to purchase condos or apartments.
What are you doing with the condo
Depending on what your plan is with the condo, it may also be easier to get a mortgage loan on it. If you’re planning to by the condos and rent them out to people, it is going to be more difficult. If the purpose behind buying the condo or apartment is for you to live in you’re going to be more likely able to get a mortgage loan.
Because banks decided not to give loans on living arrangements like condos and apartments in the past, the rates between much higher. Over the years though, the rates have started to go down substantially. It is noted lately, that you can get a home loan on a condo or apartment by only placing about 5% down. 20 years ago this would not have been even close to an option for you.
If you were looking to buy a complex in order to rent them out, you are going to have to have your own financing. Things are still not completely on board with loaning money to people in order to use these buildings as an investment. It is easy to see why Banks do not want to loan the money to people like this because of the past incidents. Thanks can see these feelings as an opportunity for them to lose money.
Is there is a financial crisis, oftentimes the owner of these condos are going to walk away from the buildings. If they are being loaned out by a bank, the bank is very unlikely to get their money back. It’s the owner of the condos cannot pay their bills, it is very likely that the people living inside of the cars are not going to be able to pay their bill either.
While it may be a little bit more difficult to get a loan to purchase a condo, it is definitely something that you can do for yourself. May have to be patient and look at a couple different banks, but you should be able to get a loan.