If you are buying a condo in Puerto Rico, and are planning on financing the purchase with a mortgage, here are three numbers that your lender will want to know. Each will effect the amount of mortgage for which you will qualify.
1. How much is your monthly Homeowner’s Association Fee (HOA)? These fees vary from building to building, and are usually paid on a monthly basis. The fee covers various services of which everyone in the building benefits. As an example, some buildings include water and electric service in the monthly HOA, so it is always best to find out what the fee includes and how much due each month.
2. Are there any pending special assessments. After Hurricane Maria, many buildings now understand the value of having a generator that services the whole building. Those that don’t have a generator, or one that only serves public areas like the lobby and elevators, are now opting to install whole building generators. And because of this, the HOA is now adding special assessments to the monthly HOA fee until the cost of the new generator is paid off.
3. What is the cost of the insurance for the unit? This insurance should cover the repairs in the event of fire, hurricane or earthquakes and is often mandatory.
Each of these three numbers may affect the amount of mortgage for which you qualify. For further advice and info on the condo costs that effect your mortgage qualification, please check with your chosen mortgage lender.