Buying a condo without formal HOA

5 Replies

Hello everyone, 

I'm looking to purchase a detached condo, which is listed for sale as a condo. The entire area has three unit, one duplex and one detached which is the one I'm interested in. It is listed as condo where the owner is responsible for maintenance, so there is no condo fee or HOA rules or board in place, but it's formally listed as a 'condo'. Is there any lender especially in Massachusetts who is willing to give a loan to such property?

Thank you very much,


Hi Sarann, I'm not sure if she can help, but reach out to Marcia Fecto at Envoy Mortgage. She's done some pretty impressive financing for myself and other clients here in Connecticut. Shoot me a PM and I will send it over to you! 

@Sarann K.  The issue with this kind of condo is that there is not only no professional management, but there are normally no reserve funds either.  If one of the units' roof or septic system fails and the other owners don't have the cash to pay their share, things will get messy fast.  

Not only that, but with no rules to enforce, you might find yourself or your tenants living with others who don't care for their property, party hard and loud into the wee hours of the morning, stack up junk cars in their driveways like legos, etc.

That said, if you still want to move forward, I would look for a portfolio loan from a local bank or credit union.

@Filipe Pereira The last two deals I did with Envoy were AWFUL.  

On one of the sales, the broker (with the initials of P.L.) told me to schedule a closing 30 days after P&S. Things dragged on and on and on - and we finally closed on day 75.

At 55 days past the receipt pre-approval letter, he tells me that the buyer has past "credit issues", so in spite of my questions about the quality of the pre-approval and his answers assuring me that he had done the homework on it, it was not worth the paper it was written on.

On the other sale, he pre-approved my buyer for a $0 down USDA loan.  By the time we finally closed, he told her that the $0 down option wasn't going to work for her.  My client had to wipe out all of her 401K savings to cover the down payment.

Glad you had better luck with them, but I'll never use them again.

Thank you all for your advice, really appreciate every bit of it, in the meantime, I'm trying to call many local banks, but most of them seem to be discouraged by such property.