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Originally Posted by Sophisticated Lifestyles
Do banks look at the HOA fee for the condominium you are trying to get approved for? Or do they just simply go by the monthly mortgage payment you will pay out monthly? What factors do they take into consideration besides income and what are immediate red flags that you will not be approved for a loan?
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Most definitely the HOA and Condo Fees are considered in the qualification ratios! These fees frequently kill a borrower's ability to purchase. Now, that said, there are a couple of tricks.
If the fee covers routine utilities, and
if you can get the management company to put in writing the percentage of the condo fee devoted to the utility payments, many lenders will let you deduct that amount from the condo fee when qualifying. Water is commonly included, but we do see gas and electric upon occassion, as well as, cable and internet.
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