Thinking about a Sandy Springs condo, but not sure how the financing works? You are not alone. Condos are popular along Roswell Road and the Perimeter corridors, yet the loan process has extra steps that can surprise first-time condo buyers. This guide breaks down how condo financing differs from single-family homes, what lenders look for in a building, and how HOA fees shape your budget and approval. Let’s dive in.
Condo financing vs. single-family loans
Condo loans review two things at once: you and the building. With a house, a lender focuses on your credit, income, assets, and the appraisal. With a condo, the lender also underwrites the project itself, including the association’s finances, insurance, and legal status.
This second approval step is why a buyer can be well qualified and still face a delay or denial. If the building’s documents do not meet program standards, financing can be limited or more expensive.
Warrantable vs. non-warrantable
Lenders often classify condo projects as warrantable or non-warrantable. Warrantable projects meet the eligibility standards for common programs. Non-warrantable projects may require a portfolio lender, larger down payment, or cash. Your options can change by building, even within the same neighborhood.
Full review vs. limited review
Some loans require a full project review, which means the lender studies the association’s financials, insurance, budgets, and policies in detail. Other scenarios allow a limited review or a waiver if the project meets specific criteria. The path depends on your loan program and the building’s documentation.
The condo questionnaire explained
The condo questionnaire is a form completed by the homeowners association or property manager. It provides the project-level information your underwriter needs to approve the building.
Expect requests for the current budget, reserve study, insurance certificates, owner-occupancy mix, delinquency data, special assessments, and any litigation. This information drives the lender’s decision about the project.
Timing and who handles it
Your lender, closing attorney, or title company typically requests the questionnaire shortly after your contract is signed. Turnaround can range from a few days to several weeks. In busy mid and high-rise buildings near Perimeter Center, management teams handle many files at once, so response times vary.
Tip for Sandy Springs: ask your agent to initiate the questionnaire request immediately after ratification and to track the status every few days.
Why reserves, assessments, and insurance matter
Lenders want to see that a building can handle long-term repairs without unexpected strain on owners. That is why reserve funding, insurance coverage, and any special assessments matter.
What lenders expect to see
- A recent reserve study and a consistent plan to fund reserves.
- Reserves held in liquid accounts under the association’s control.
- Adequate master insurance, including liability, hazard, and fidelity coverage.
- Clear records that are signed and up to date.
Frequent or large special assessments, unresolved lawsuits, or borrowing from reserves can trigger extra conditions, delays, or ineligibility.
Older buildings near Roswell and Perimeter
Many Sandy Springs towers date from the 1970s to 1990s. Elevators, roofs, façades, parking structures, and common HVAC systems are all high-cost items that need planning. Ask for the association’s last two to three years of financials and the most recent reserve study early in your process.
How HOA fees affect your loan approval
Most lenders include the full monthly condo or HOA fee in your debt-to-income ratio. That means HOA fees are counted alongside principal, interest, taxes, and insurance when the lender calculates what you qualify for.
- Higher HOA fees reduce your qualifying purchase power because they raise your monthly housing expense.
- Some programs also require you to have post-closing cash reserves measured in months of your total payment, including HOA. Bigger fees can increase the reserve requirement.
- If a special assessment is approved, the lender usually wants the amount, payment plan, and proof that you can cover it. In some cases, funds are collected at closing or an installment plan is verified.
Budget tip: even if your fee covers utilities, parking, or security, underwriters generally count the full amount in monthly obligations. It still helps your personal budgeting to know what is included, but do not expect a lower number in qualification.
Appraisal and marketability risks
Appraisers look for comparable sales within the same project when possible. If a building has visible deferred maintenance, pending litigation, or a high number of rentals, the appraiser may adjust value and marketability. Investors and lenders prefer projects that are easy to resell, so project health can impact appraised value and loan terms.
Loan programs in plain English
All major programs review the project in some form, but standards vary and change over time. Always confirm current guidelines with your lender for the specific building.
Conventional loans
Conventional financing uses project reviews to confirm reserves, insurance, occupancy mix, delinquencies, commercial space, and more. Some scenarios qualify for a limited review, which can streamline the process if the building meets certain criteria.
FHA loans
FHA financing requires the project to meet program approval standards. FHA also allows single-unit approvals in some cases, subject to the building’s documentation and risk profile.
VA loans
VA maintains a condo approval process. A project must be on the VA approved list or meet the criteria through the lender’s review before closing.
A smart path for Sandy Springs buyers
You can reduce surprises and keep your timeline on track with a few proactive steps.
- Talk to a lender experienced with Atlanta-area condos before you write an offer.
- Ask for the association contact, current budget, insurance certificates, reserve study, and recent board minutes as early as possible.
- Start the condo questionnaire right after ratification and follow up on timing, especially in large buildings along Roswell Road and near Perimeter Center.
- Model your budget with the full HOA fee and potential reserves. If a special assessment is planned, include it in your scenario.
- Work with an agent who knows which buildings are typically friendly to conventional, FHA, or VA loans and which may be non-warrantable.
- Consider an HOA document contingency or extra time for the project review when appropriate.
Guidance for condo sellers
You can help your buyer’s lender move faster and protect your contract timeline.
- Keep HOA financials, minutes, budgets, and insurance certificates organized and accessible.
- Confirm who completes questionnaires and how long responses usually take.
- Encourage your association or management company to respond promptly to lender requests.
Your next step
Condo financing is absolutely doable when you know the moving parts. If you plan ahead for the project review, confirm reserves and insurance, and factor HOA fees into your budget, you will shop with confidence in Sandy Springs. If you want a calm, experienced guide who understands local buildings and the financing details that matter, connect with Bobbie Schmitt for tailored representation.
FAQs
Why was my condo loan denied even with strong credit?
- Condo loans add a project review. If the association’s reserves, insurance, delinquencies, litigation, or other factors do not meet program standards, a lender can decline even when your credit and income qualify.
How long does the condo questionnaire take in Sandy Springs?
- Turnaround varies by building and management. Some respond within a few days, others take several weeks. Start the request immediately after contract ratification and follow up.
What makes a condo project warrantable vs. non-warrantable?
- Warrantable projects meet standard investor guidelines on reserves, insurance, occupancy, delinquencies, and commercial space. Non-warrantable projects do not and often require portfolio loans or cash.
Will my lender count the full HOA fee in my qualification?
- Yes, most lenders include the full monthly HOA fee in your debt-to-income ratio and in required cash reserves. This can reduce your qualifying purchase price if fees are high.
Can I finance a condo with a special assessment?
- Often yes, but the lender will want the amount, purpose, payment plan, and proof that you can cover it. Some lenders collect funds at closing or verify an installment plan.
Are FHA or VA loans harder to get for condos?
- It depends on the building. FHA and VA both have project approval standards. Some Sandy Springs buildings qualify, others may not. Confirm availability with your lender for the specific address.
How can I check if a building is FHA or VA approved?
- Ask your lender to verify the project’s status and current eligibility. Program lists and rules change, so rely on your lender’s most recent guidance.
What are my options if the building is non-warrantable?
- You can explore portfolio loans with different rates and down payment requirements, adjust your price point, or target a warrantable building that fits your goals and timeline.
