Edina Realty Mortgage and Matt Havel
Your Experts in Condo/Townhouse Financing

When buying a condominium or townhouse, there is more to consider than just a mortgage. This information can you help you become more comfortable with the downtown condo/townhouse market and the questions you should be asking.

Edina Realty is the only real estate company open in Downtown Minneapolis!

Founded in 1983 to serve Edina Realty's home buyers and Realtors, Edina Realty Mortgage is a joint venture partner with Edina Realty Home Services and an affiliate of Wells Fargo Home Mortgage.

A national lender in 50 states, we have financing programs for primary homes and investment and vacation property. It is our utmost commitment to meet your needs with competitive products and price as well as exceptional customer service.

Home Buyer Guarantee Plus

We promises that your closing will run as smoothly as possible, with no last-minute surprises. That's why we guarantee your closing costs PLUS your closing date - or you get money back!

Here is how Edina Realty Mortgage can help you with your new purchase:

We have many loan programs available that allow you to buy with NO down payment (and no mortgage insurance)! You can get into a new Condo or Townhouse faster than you ever thought possible.

Our Interest-Only Arms allow you to hang onto your cash while your home appreciates in value!

Wells Fargo Smart/Pay Home Financing^® gives you greater purchasing power to afford more home with interest-only payments and below-prime interest rates. For loans from $200k-$3 million.

Our Builder Best^® Program allows you to lock in an interest rate up to 12 months for new construction and conversions. You can lock in your purchase price and be gaining equity in your new condo before you move in!

Here are some important questions to ask in regards to your new Condo or Townhouse:

1.        What is the estimated timeframe for project completion? When can you move in?

2.        What phase of construction is your condo currently in? How many phases are expected before the entire project is complete?

3.        Is the project warrantable or non-warrantable? This will have direct bearing on the type of mortgage you can utilize to purchase your new condo.

4.        What does the Homeowners Association Dues cover? For example: heat, cable, snow removal, lawn care, workout facilities, parking, gas, electric etc.

5.        Does the Association require that you put down reserves? If so how much? It is very common to expect to pay 2 months of association fees upfront; this is typically non-refundable.

Financing Condominiums and Townhouses:

FHA

Condominiums: Need FHA approval

Possible Spot Approval: 921 form required plus extra FHA Information

Townhouses: All townhouses are acceptable for FHA financing as long as the property is legally described as a townhouse (lot and block)

CONVENTIONAL

Condominiums: >5% down are acceptable for financing; <5% down, 921 form is required to be completed by the association and have acceptable answers

Warrantable Project: Fannie Mae or Freddie Mac approved Non-warrantable Project: Neither Fannie Mae or Freddie Mac approved.

Townhouses: All townhouses are acceptable for conventional financing as long as the property is legally described as a townhouse (lot and block)

Here are some helpful definitions for you as you search for your new home downtown:

Cooperative or Co-op: A form of multiple ownership in real estate in which a corporation or business trust entity holds title to a property and grants the occupancy rights to particular apartments or units to shareholders by means of proprietary leases or similar arrangements.

Condominium: A form of property ownership whereby the purchaser receives title to the unit and a proportionate in common areas. A separately owned space of the interior surfaces of the perimeter walls, floors, and ceiling.

Condo Conversion: A form of property that was once rentable living space, which is being converted into living space whereas the occupant is in title, thus owning the property.

Fannie Mae: The nation’s largest mortgage investor. It is a private corporation that purchases single-family and multi-family FHA, VA, and conventional mortgages.

Freddie Mac: A quasi-governmental secondary market organization that offers various mortgage purchase and securitization programs.

Homeowners’ Association Dues: The fees charges to a homeowner either in a condominium or planned unit development for upkeep of the common areas.

Planned Unit Development (PUD): A comprehensive development plan for a large land area. A PUD usually includes residences, roads, schools, recreational facilities, commercial, office and industrial areas. Also, a subdivision having lots of areas owned in common and reserved for the use of some or all of the owners of separately owned lots.