The DC Condo Search Saga Continues: What I learned this Week

So I found it. The dream condo in NE. Highly affordable at just under $200,000 with parking and storage. 1 bedroom, 1 bath with brand new everything, washer dryer, 4 blocks from metro, security cameras and the works with granite, steal, wood floors, custom lighting, ya ya ya. (See pics).

Where in God's green DC did I find this place? The secret lies with me until the deal closes. What I've learned: With new construction or super old buildings that are now gutted and renovated thus considered new construction you can not obtain an FHA loan or sometimes a conventional loan with a fixed rate until 50% of the building is sold.

And since this building is only 10 units with 1 sold I have a ways to go. Which doesn't seem that bad but as soon as those 50% are sold the price almost always jumps, so what is now about $198,000 will be somewhere around $240,000. So it's back to the drawing board with my mortgage broker to find alternative financing. Otherwise, I would need to put 20% down. And for you math nerds out there you'll realize that's about $40,000.

Also I learned that you should always ask for the appraisal documents for a condo. Since these units are priced low to sell, but worth a bit more in appraisal value, you already have equity in the home. And you can use that equity as a down payment so you can put down less. Make sure when you're searching for that perfect pad in DC you ask for things like this. Also, since this building was gutted and renovated you need ask about the wiring, plumbing, research what the building was before it was renovated, has it ever had water damage, is there a new roof and if so is it under warranty, do the appliances come with the unit and if so, are they under warranty, etc. etc. And lastly, I learned that you should always ask to see the condo docs. Because even though the condo fee might be less than $200 right now with the units unsold it will certainly jump once residents start to move in. So don't be fooled by a super low condo fee in the beginning. Make sure you can afford to pay more if it jump suddenly! Stay tuned...................the saga continues.