Buyer Resource Center › The Home Search › Buying a Condo: Pros, Cons, and Questions to Ask
A condo can be a smart way to own a home with less maintenance, a great location, and a lower price than a single family house. It also comes with shared rules, monthly dues, and a homeowners association that affects your investment. Here's what to weigh, and the questions every condo buyer should ask, especially if you're using a VA loan.
Pros and Cons of Condo Living
Pros
✓ Less exterior maintenance and yard work
✓ Often a lower price than a house in the same area
✓ Close in locations near transit, dining, and work
✓ Amenities like gyms, secure parking, or common spaces
✓ Easy to lock up and leave for travel or deployment
Cons
✗ Monthly HOA dues that can rise over time
✗ Possible special assessments for big repairs
✗ Rules on pets, rentals, and renovations
✗ Shared walls and less privacy
✗ Financing depends on the building's approval and health
7 Questions Every Condo Buyer Should Ask
Is the Building VA Approved?
To use a VA loan, the condo project generally must be on the VA's approved list. If it isn't, a lender may be able to request approval, but that takes time and isn't guaranteed.
What Are the Rules and Restrictions?
Read the bylaws and the covenants, conditions, and restrictions. Look for pet limits, rental restrictions, parking rules, renovation approvals, and quiet hours.
How Healthy Are the Association's Finances?
Review the budget, financial statements, reserve study, and recent meeting minutes. Healthy reserves help cover big repairs without surprise special assessments.
What Do the Monthly Dues Cover?
Dues pay for common area upkeep, insurance on the building, and amenities. Some also cover water, sewer, garbage, or internet. Know exactly what's included so you can compare true monthly costs.
Who Runs the Board and Management?
Find out who sits on the board and whether a professional management company is involved. Good management tends to mean better upkeep and clearer communication.
How Many Units Are Owner Occupied?
A high ratio of owners to renters often means better upkeep and can make financing easier. A building with mostly rentals can face lending challenges.
What Inspections Should You Get?
Inspect the unit itself, and ask about the condition of the roof, siding, windows, and other shared elements, which the association maintains. You'll also want the right insurance for the inside of your unit.
The bottom line: A condo can be a great fit, especially if you want low maintenance living in a convenient location. Just make sure the building is VA approved, financially healthy, and governed by rules you can live with. I'll help you dig into the documents before you commit.
Frequently Asked Questions
Can I use a VA loan to buy a condo?
Yes, if the condo project is VA approved. If it isn't on the approved list, a lender may be able to request approval, but it takes time and isn't guaranteed.
How do I know if a condo is VA approved?
Your agent or lender can check the VA's condo approval list. I check it before touring any condo with my VA buyers.
What is a special assessment?
It's an extra charge the HOA bills owners to pay for major repairs or projects not covered by reserves. Reviewing reserves and meeting minutes can help you spot one coming.
Are HOA dues included in my mortgage qualification?
Yes. Lenders count HOA dues as part of your monthly housing cost when figuring your debt to income ratio and VA residual income.
Can I rent out my condo later?
It depends on the association's rules. Some buildings limit the number of rentals or set minimum lease terms. Check before you buy if renting is part of your plan.
Do I need my own insurance for a condo?
Yes. The association's master policy covers the building, but you'll need a condo policy for the inside of your unit, your belongings, and liability.
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Meet Your Veteran Realtor
Troy Doty, Principal Broker
Troy Doty is a Principal Broker with Northwest Realty Source in Portland, with 25 years in real estate and over 1,000 homes sold across the Portland metro and SW Washington. As a Marine Corps veteran, Troy has a true passion for helping Portland veterans and active duty military families buy and sell homes, whether you're PCSing in, transitioning out, buying your first home, investing in a duplex, triplex, or fourplex, or right sizing later in life.
Schedule a Call or Video Meeting ➜ More About Troy ➜ Free Veteran Buyer E-BookPrefer to call or email? 503.997.4169 · troy@nwrealtysource.com
Troy Doty, Principal Broker, Northwest Realty Source. Licensed in Oregon and Washington. ABR®, MRP, and SRES® are credentials of the National Association of REALTORS® and its affiliates. CIAS™ is a designation of U.S. Realty Training. Content adapted in part from ABR® consumer resources. This page is general information, not legal, tax, or lending advice.
