New condos vs Established condos

Many people have been asking me about what they should look out for in new construction and existing, older condos when buying. It is just as important for the condo be approved for financing as much as the buyer shouldbe approved. If the buyer is qualified and the condo not qualified then financing may not be obtainable. So, I thought I'd post some questions that should be asked: For new condos:... [more]

Many people have been asking me about what they should look out for in new construction and existing, older condos when buying. It is just as important for the condo be approved for financing as much as the buyer shouldbe approved. If the buyer is qualified and the condo not qualified then financing may not be obtainable. So, I thought I'd post some questions that should be asked: For new condos: 1. Did the developer apply for (or have) Fannie Mae or FHA approval? 2. Are they 51% sold (in-contract or closed) to owner occupants or 2nd home purchasers (30% pre-sale for FHA) (investment units do not count toward the pre-sale requirements) 3. Does any single entity (besides the sponsor selling the units) own more than 10% of the units 4. Is there more than 20% commercial space? 5. Is there any litigation? 6. Does the budget have a 10% line item towards reserves or a reserve study in place? For older, established condos: 1. Did the condo sell 90% or more of the units? 2. Does any single entity own more than 10% of the units? 3. Is there more than 20% commercial space? 4. Is the building at least 51% owner occupied? 5. Do the unit owners control the board now? 6. Is there any litigation? sunny.hong@bankofamerica.com [less]