Bethesda Home Loan Mortgage

Financing Condominiums

The first thing a buyer needs to consider when purchasing a condominium unit is the availability of financing. Lenders perceive a greater loss risk when lending for this type of collateral. Some lenders are very particular about the project profile. Problem areas:

• Is the developer still involved in the project ownership or management? Developer control is a maintenance issue. If the developer goes bankrupt the remaining unit owners face increased maintenance costs.

• Are there a large concentration of rental units? The belief that renters take less care of the project causes lenders to evaluate that a majority of the project is owned by individuals living in their unit.

• Are there deferred maintenance issues, commercial space, or any issue that could adversely affect the appeal or marketability of the project?

Eligible Non-Approved Projects

• The Victoria, Rockville, MD

• The Willoughby, Chevy Chase

• Devonshire East, Bethesda

• North Creek Place, Bethesda

• Spring Lake, Bethesda

• 1150 K Street, NW

• The Wardman, NW

• Marshall House, NW

• 4600 Connecticut, NW

• Eton Court, NW

A creditworthy borrower will generally always be able to obtain financing from a portfolio lender who is able to overlook project issues in consideration of a stronger borrower.