HOA Dues And Your Mortgage Qualification

HOA Dues And Your Mortgage Qualification

Have you ever lived in a community with a Home Owners Association (HOA)?  If you live in the Raleigh, Cary, or Wake Forest areas, you probably do........especially if it is a newer neighborhood or has a community pool.
HOA dues can fluctuate from community to community based on the benefits they offer.  Some condo/townhome communities combine within their HOA fees your trash and recycling, water bill, and all of the exterior and grounds maintenance for your home.  If the community has a pool, then you may be getting a really good deal.  Break all of these items out individually and add them up, you may find your HOA monthly dues are really affordable.
The problem people run into is when they don't account for the HOA dues as part of a monthly expense when they are looking to purchase a home and figuring their monthly mortgage payment.
Let me tell you, even if you are not thinking it, your lender is.  Although your lender may say you qualify for a mortgage loan up to $200,000, if you are considering a property with a $150/mth HOA fee, you may not qualify for that $200,000 mortgage any longer.  Even though you pay your HOA bill separately each month, this amount is considered by your lender as part of your monthly payment and can decrease your purchasing power.
The point being, make sure when you are looking to purchase that new Apex home or townhome in Holly Springs, be sure to communicate any HOA fees with the property to your lender so you are sure that you still qualify for the property and don't get caught off guard.

Chad Wingler Headshot
Phone: 919-323-2616
Dated: April 9th 2014
Views: 17,267
About Chad: Buying a new house is one of the largest steps a person makes in their life; emotionally, physically...

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