Question:
“Maybe you can answer this for me. I talked with a lender who said I can buy a house for 490K, but a condo for only 450K. Why do I qualify for a higher price for a house than for a condo?”
Answer:
It’s because of the HOA fees. The lender adds them to your loan, property tax, and insurance payment to come up with the monthly payment that they’re qualifying you for.
You can argue that doesn’t make much sense because HOA fees pay for things, thus saving you money.
Most HOAs pay for exterior maintenance, hot water, trash, fire insurance, and other things.
