How the Neighbors Can Tank a Condo Loan

Before making a loan to a would-be buyer, lenders comb through the building’s financial statements to see if too many condos remain unsold, or if units are mostly rentals instead of owner-occupied.  Lenders also look to see if the building’s cash reserves, which help cover maintenance costs, are too low.  These factors, which have nothing to do with a potential buyer’s finances, can put a chokehold on a loan.

Wall Street Journal    December 6, 2012