BluefoxToday blog : Condos for Sale in Las Vegas Present Financing Challenges!

Condos for Sale in Las Vegas Present Financing Challenges!

Condos for Sale in Las Vegas Present Financing Challenges

Take a peek at prices of condos for sale in Las Vegas.  It is no wonder not a week goes by the last several years that I get multipleCondos for Sale in Las Vegas inquiries from buyers who see $20K, $30K, $40K condos for sale in Las Vegas online.  These buyers are first time buyers, owner occupied buyers, investor buyers, second home buyers, vacation home buyers etc.

A very large percentage of these potential Las Vegas condo buyers also want to leverage these incredible bargains via financing.  This is a problem here in our valley.  It doesn’t matter what your credit score or income is.  It doesn’t matter if these buyers are highly qualified to purchase a $500K condo home and only want to spend $40K.  What matters to the lender or underwriter is the condominium certification.

There are several items in that condominium certification that could upset the apple cart and blow up financing on a condominium home sale.

The lender is looking for certain things in the Condo Certification that will determine if they will lend money on that specific condo property:

  • Lenders want to see low investor concentration (rentals)
  • Low HOA delinquencies
  • No construction defect or other litigation against HOA or community
Here’s the scoop about the condo market in Las Vegas:  we have an enormous amount of defaults here so you can scratch the low HOA delinquencies off most condo certification lists, we have a high amount of investors in our market so you can probably scratch the low investor concentration off most condo certification lists, we have hungry lawyers in town so the construction defect litigation on a newly constructed project is a possibility.

Of course there are ways to work around this such as through private money financing or Fannie Mae HomePath® financing.  Of course not every buyer or condo fits the underwriting mold for those either.

The moral of the story is if you are eyeballing a condo for sale in Las Vegas, you may want to make sure the cash is in the bank.

Click Here to See the Newest>>>> Condos for Sale in Las Vegas


Thanks,  Renée Burrows 702-580-1783 Broker/Owner, REALTOR®
 

 

copyright 2006-2013 Renee Burrows, REALTOR®, Savvy Home Realty Solutions  702-966-2494

Blog Disclaimer Important Notice

Realtor/MLS Member, NAR, NVAR, GLVARAccredited Buyer's RepresentativeSeller Representative SpecialistSenior Real Estate SpecialistAt Home with DiversityResort & Second Home Property SpecialistShort Sale Foreclosure Resource

 

 

 

Sell Las Vegas Home          Las Vegas Homes for Sale     Las Vegas Rental House

              

 

 

 

Comment balloon 10 commentsRenée Donohue • December 09 2011 09:57AM

Comments

Renee:  This is great information for anyone looking to buy a Las Vegas Condo!  It isn't as easy as "we'll take that one"...cash is still king!

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) over 6 years ago

Hi Renee, that happens here also. I have a new buyer wanting a condo in this West Palm Beach, Fl community and no bank will finance there. Cash only! Thanks for the post.

Posted by Malinda Montgomery RSPS AHWD-Realtor (Adams Cameron & Company) over 6 years ago

Renee

Well our problem is not as significant I think as yours, but same issues here is many condo communities.

Lots of buyers want to use FHA but so many complexes are not approved. And getting around the low owner occupancy (which is getting worse in some areas with investors buying up condos for cash) and high HOA fee deliquency rates is a challenge. It's a shame because affordability is better that is has been in years.

Jeff

Posted by Jeff Dowler, CRS, The Southern California Relocation Dude - Carlsbad (Solutions Real Estate ) over 6 years ago

Anita:  BINGO!

Malinda:  You are welcome!

Jeff:  THank you for bringing up the FHA aspect and the others, much appreciated!

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 6 years ago

Renee, wonderful informational post...I hope you have a relaxing weekend...I know I sure need one!@!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) over 6 years ago

Hi Renee - excellent and informative post. We experience similar things here in our market if someone wants to do an FHA loan on a condo, some complexes it cannot be done. Cash is king!

Posted by Sharon Paxson, Newport Beach Real Estate - Arbor Real Estate (Arbor Real Estate) over 6 years ago

Condo Certs!  Three for $19.99 but WAIT!  Act now and get five for the same low price, simply pay additional shipping and handling.  ShackDiva!  I just had the most wonderful dream, so real too!    

Posted by Kevin J. May, Serving the Treasure & Paradise Coasts of Florida (Florida Supreme Realty) over 6 years ago

Renee

I can see how that can be a real and seriuos problem. Condos are hard to work these days

Posted by Tom Braatz Waukesha County Real Estate 262-377-1459, Waukesha County Realtor Real Estate agent. SOLD! (Coldwell Banker) over 6 years ago

Thank you everyone for the comments.

LOL Kevin - thanks for the call to action.  Now people are going to be calling me for the 3/$19.99 condo certs.  You won't mind when I give them your number will you? 

Posted by Renée Donohue, Las Vegas Real Estate Broker - www.urLVhome.com (Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate) over 6 years ago

Renee,

Even private money is very cautious about condos. It's a shame because there are a bunch of great ones available for pennies right now.

Posted by Esko Kiuru over 6 years ago

This blog does not allow anonymous comments