Condo Living 101

Many condo renters mean no mortgage insurance

May 18, 2008 on 11:08 am | In Information | Comments Off

If you want to insure your condo, check first how many are renters are in it by asking the president of the Home Owners Association. If more than 40% of the units are being rented, you will not receive insurance because mortgage companies consider condos with many renters as non-warrantable. This means that there is a higher risk for the mortgage companies thus they would not offer mortgages for condo buyers. This risk is explained by the increased chance of troubles, domestic arguments, vandalism, destruction of property, police visits and others. This is why you have to choose carefully what condo to live in for your safety and peace of mind.