Ask An Expert - HOA Tips & Cash vs Mortgage

Home Owner Associations - What You Need to Know

 “We have never lived in a neighborhood that has a Homeowner’s Association. What are some things we need to be aware of as we are considering buying a home that has one?”

This is a great question that sometimes gets overlooked in the home buying process. The most important step for buyers when considering purchasing a home that is in an HOA, is reviewing the Association documents and by-laws. It is vital to know what the rules and regulations, deed restrictions, and covenants are in the community. They can vary from what color your house can be to what size pets you can have.

A major item that comes up all the time is in regards to vehicles. Most HOAs do not allow commercial vehicles to be kept at homes. This biggest surprise to a lot of people is that there are several associations in Sarasota that do not allow pick-up trucks to be parked in driveways. If it doesn’t fit in the garage, it cannot be kept at the house. Motorcycles have also become an issue in some communities. They have restricted the use of motorcycles to certain times and in extreme circumstances banned them all together.

Key Solutions utilizes several different contingencies for buyers purchasing in these communities. Ask your agent about the time periods for document review and most importantly, do your homework on the communities in which you are considering.

Pay Cash vs Mortgage

“Given the low interest rates, what is the advantage of purchasing with cash instead of a mortgage?“

Given the current low interest rates and limited inventory of homes, we get this question all the time. Instead of asking cash OR a mortgage, we want to make sure buyers are aware there is an option for cash AND a mortgage. Because interest rates are still incredibly low, buyers want to make sure they are choosing the best way to have their money work for them.

Purchasing a home using cash will give buyers an advantage over offers that require financing. In our current market, we are seeing multiple offers on many homes and a cash buyer will almost always look the strongest. What we want to ensure buyers are aware of, is that there are several programs in which the buyer can immediately receive up to 75% of the value of their home after closing, if the property is a primary residence. There are many other programs similar to this as well. Any buyer who is debating on paying cash or obtaining a mortgage should speak with a lending professional about their options. Our buyer experts and lender affiliates are happy to go into much more detail about these options.

If you have any questions about buying or selling a home, please "Ask An Expert." Don't hesitate to contact the team at Key Solutions Real Estate Group for assistance, or call #var-phone-number#.