Condo, find out ALL about the building
first!
This the second of two videos on the topic of buying a condo, here I will cover the building’s aspects most lender look at to approve the loan. If it a lender’s concern, they are equally important for you as a buyer.
Getting a mortgage on a property deeded as a condo is more challenging than financing a single family home. When you buy a condo you are responsible for everything inside your unit and the association is responsible and maintains the common elements. Be aware that some Town Homes are deeded as Condos ( and some as single family homes).
If you are financing, the lender will want
to see the building’s financial information, to determine if the building meets
the requirements for the type loan you are requesting. Lenders not only qualify
the buyer, and the value of the asset used as collateral, they have specific rules
to approve a building. Depending on the program and the percentage to be
financed, the guidelines vary.
You don’t want to go thought the whole process, to find out after you have spent time and money, that your loan will not be approved, because the building doesn’t qualify. Why would do that if you can avoid it?
Are you aware of how strict is the
financing of condo units?
These a 6 things to take into consideration:
1.- Does the Building have
Reserves?
This is a very important questions to ask
,even if you are paying CASH for the property. For example… there is major
repair needed and there are not reserves… what happens?
If an special assessment is needed, either
it is collected and the work is done OR, the building starts to deteriorate and
depreciate due to lack of maintenance.
1.- 2.- Is there any Litigation?
Most lenders are very strict with this
issue… if you decide to get in a condo that has a litigation in progress.
Do your due diligence and find out what
happened and the implications it may
have in the future.
3 3.- Investor Concentration?
This refers to the number of owners in the
project who are investors. Some lending programs have limitations regarding the
percentage of units that can belong to investors in general and to a single
investor. A high investor concentration can be a problem for an FHA loan or a
loan program when the purchaser is an investor.
Homeowners tend to take better care of the
building than tenants who will be there for just a short period of time.
4. 4.- Are there Late accounts?
The healthiness of the condominium finances
are key for the lenders, they have a max number of units that can be late in
HOA fees payments.
If your neighbors don’t pay their HOA dues,
it will affect everyone.
5. 5.- Condo Questionnaire turnaround time?
Some others will require a Condo
Questionnaire which is not requested by
the lender on financing with higher down payments. On Cash transactions it would
have to be required by the buyer directly if .
The condo questionnaire answers all of the
previous questions, ask the title company to request it on day one, and confirm
that the building qualifies before you spend in the inspection.
6. 6.- Building Insurance Coverage
The bank reviews and approves the master
insurance policy, what is and the amounts being covered. It covers the building
structure but it doesn’t cover the interior of the unit or personal property.
In additional the lender will require HO6 Insurance. It is also known as “walls
in insurance”, it cover the interior of the unit, personal property and owner’s
liability.
One of my customers, that owns a condo
located in a third floor, had a pipe burst that damaged her kitchen cabinets, several
walls and the kitchen flooring also causing damage to the unit below; it was
covered by her HO6 insurance! … The
total bill was thirty five thousand dollars 35,000. She was very grateful that she
had it!
it!
It is recommended to always carry it. It also covers liability.
Low building’s reserves, litigations, a
high investor concentration, late accounts and poor condo insurance may affect
the ability to obtain financing on a condo and may represent you potential
issues and financial surprises that you want to avoid.
Lots of details, right???
Do your homework and make an informed
decision!
Please let me know if you have any
questions!
About Inés Garcia-Arcaya
More than properties — I deliver peace of mind.
Real estate decisions are complex and the stakes are high. I help buyers and sellers move forward with confidence by combining deep market knowledge, broker-level experience, and an architecture-trained eye. My role goes beyond managing a transaction. I help you understand the numbers, see what others may overlook, avoid costly mistakes, and move through the process with clarity and less stress.
Because true luxury isn't only what you buy or sell — it's how protected, informed, and at ease you feel along the way.
My background is a little different from most agents. I studied architecture in Venezuela, earned an MBA from the University of Miami, and spent years in brokerage leadership — including serving as managing broker for one of the largest real estate firms in South Florida. That combination shapes everything about how I work. I look at properties through the lens of design, function, and long-term value. I analyze pricing and strategy with a business mindset. And I bring the kind of transactional experience that only comes from having seen hundreds of deals from every angle.
I've lived in South Florida since 2000 and currently call Downtown Coral Gables home — a city I genuinely love for its walkability, architecture, and sense of community. That's not a marketing line. It means I know these neighborhoods personally, not just professionally.
Real estate involves many moving parts: pricing, timing, condition, contracts, inspections, insurance, financing, associations, negotiations. My job is to simplify all of it — without sugarcoating the hard parts. I believe in honest advice, even when it's not what someone wants to hear. I'd rather have a direct conversation early than let a client move forward on incomplete information.
If you're buying, selling, leasing, or just trying to understand the market — I'm happy to talk.
My Values
Positive Impact
My goal is to positively impact the people around me by transforming the experience of buying and selling real estate into a relationship based on education, guidance, and enjoyment.
Trust
What you see is what you get. I believe in transparent relationships, honest advice, and consistent communication throughout the process.
Congruence
I follow my heart, but most importantly, I let my clients’ needs, interests, and goals lead the relationship.
The REAL Customer Experience
I apply my knowledge and experience to simplify the complexities of the real estate process, helping my clients feel informed, confident, and supported every step of the way.
Sell Your House Quickly in Miami: Essential Strategies
This guide offers effective strategies for selling your house quickly in Miami, covering market analysis, pricing, staging, marketing tactics, and working with agents. Real-life case studies illustrate successful sales, providing valuable insights for homeowners.
The Emotional Weight of “Letting Go”
Leaving a long-time home can be emotionally challenging for seniors, filled with memories and feelings of loss. This article offers compassionate insights, real-life case studies, and practical advice to help navigate the transition while embracing new beginnings.
Coral Gables North Downtown Condo Market Insights
Explore the vibrant real estate market in Coral Gables North, focusing on condos built after 2000.
