The Extended Tour

GRAND RAPIDS: 616.791.1616

HARBOR SPRINGS: 231.526.8399

TRAVERSE CITY: 231.642.5440

RESIDENTIAL & COMMERCIAL

GARAGE DOORS • ELECTRIC OPENERS SALES • INSTALLATION • SERVICE ON ALL MAKES

VISIT OUR SHOWROOM • 1529 Burlingame SW, Wyoming 49509 616.899.4086 • boumabros.com

Since 1948

• MANUFACTURERS OF QUALITY WOOD MOULDINGS

• DISTRIBUTORS OF PLYWOOD, DOORS & STAIRWAY SYSTEMS

• FAMILY OWNED AND OPERATED FOR 3 GENERATIONS

Jenison: 616-669-3085 •

Kalamazoo: 269-343-7791

616.534.9958 design@mulinaricabinetryco.com mulinaricabinetryco.com

“Tim pours heart and soul into building and sets a high standard of quality and beauty for himself and everyone involved and they universally responded. I’ve never experienced that before where there was so much mutual respect for each and every person’s talents in their craft.”

“From the designing of the house to the final walk through we felt they were deeply committed to making our experience as easy and enjoyable as possible. They are very personable, trustworthy, and led us through the process step by step.”

“I have worked with many excellent builders over the years, and Colonial Builders are the absolute best of the best. Tim Nagelkirk not only made the building process painless, but truly enjoyable.”

“The craftsmanship of his work and the people he subcontracts with is first rate. We would highly recommend Colonial Builders to anyone considering building a home or an addition. They build quality homes with integrity.”

by Guild Mortgage Inlanta

Condo-venience Considerations for your Search

If grappling with gutter-cleaning and yard maintenance is wearing you down, or if you’re bored in the ‘burbs and craving “community,” you might be a candidate for Condo living. Whether you’re a senior looking for a low-maintenance yet independent lifestyle or in your ‘salad-years’ looking for lively – and luxuriousurban living, navigating the world of Condo loan financing requires research and strategic advice from your financial team.

HOW CONDOS WORK:

What defines a condo is ownership of a private residence with joint ownership of common areas. This means that lenders take more than your own credit profile into consideration. Lenders also look at the financial standing of the HOA, and overall structure of the development.

Assessing the financial health of a condominium association (HOA) is an important aspect not only for financing, but also for resale value and to avoid future maintenance short-falls. Well-run condominiums can offer a strong ROI. According to Zillow, condos increased in resale value by 42 percent over a 10-year period!

Lifestyle Advantages

Pro-Social: Condo living is typically more social, and since many condo developments are located in vibrant urban areas, offer more opportunities to go to interesting attractions, bars, restaurants, parks and events. It’s important to assess your suitability to both the upside – and possible downsides – of this aspect.

Focused Communities: Some condo developments cater to specific communities, such as adults over the age of 55. Some also foster social connection with programming and expansive common areas suited to gatherings.

Amenities: While it might not be cost-effective or practical to install a pool, sauna, weight room, and heated garage on a single detached home property, these types of amenities are usually readily available in sophisticated condo communities. Add security to the list and a restaurant on the main floor and everything you need is at your fingertips.

Low-Maintenance: Make no mistake – you’re still paying for building and amenity maintenance through your Condo fees. However, many people prefer a relatively fixed, shared fee to cover maintenance items than the hassle of con- tracting services ad hoc. When you’re planning to purchase a specific condo, you also want to budget for future condo fee increases.

The Condotel: If you’ve thought about purchasing a vacation property as an investment, you might consider the option of a “Condotel.”

• A condotel (“condo” + “hotel”) is a residential development that allows individual unit owners to rent to short-term guests as if it were a hotel property.

• These properties will have a check-in desk, housekeeping services, a concierge, and many other amenities found in a traditional hotel.

• Unit owners can block off times when they will be staying at their own unit, however most use the condotel as a vacation home.

Financing Considerations

Guild Mortgage Grand Rapids offers several options for condominium financing including conventional mortgages which allow for as little as a 3 percent down payment or even FHA condo loans with 3.5 percent down payments. For higher-end condos and “condotels,” Jumbo mortgages are available for clients who meet the criteria.

For a Condo to qualify for Conventional financing as an “Established Condo,” a property needs to meet these guidelines:

• The project is 100% complete, including all units and common elements

• The project is not subject to additional phasing

• Control of the homeowners' association has been turned over to the unit owners

• HOA delinquencies can be no more than 15 percent

WARRANTABLE VS. NON-WARRANTABLE

In addition to the above guidelines, there are other elements that may determine whether a Condo is “warrantable” or “non-warrantable.” As you can guess, “non-warrantable” properties can be more difficult to finance – the following are examples:

• Incomplete projects

• Projects where the HOA is in litigation, or the developer is still in control of the HOA

•Project where more than 35 percent is commercial space

•Project where more than 10 percent is owned by one individual

FINANCING OPTIONS TO CONSIDER:

• Conventional financing options with as little as 3 percent down up to $1 over conforming loan limit

• Jumbo financing options with as little as 10 percent down, loan amounts up to $3 Million

• Primary, second homes and investment properties financing options available

• FHA financing options with as little as 3.5 percent

• USDA and VA financing options with as little as 0 percent down

Determining the right condo development and right financing option to pursue will be unique to your circumstances. With careful research and the right lender strategizing your options, you could be living in the lap of luxury. ❂

Jonathan Arnold, NMLS# 129471, is the branch manager at the Ada office of Guild Mortgage Inlanta, NMLS# 3274. Connect with him at MoveUpMi.com.

Jonathan is also licensed in Florida – learn more at FloridaHomeLoanSolutions.com