Skip To Content
  • Home
  • Buying a Home
  • First-Time Condo Buyer Tips: Financing Tips & Baltimore Buildings to Explore

First-Time Condo Buyer Tips: Financing Tips & Baltimore Buildings to Explore

First-Time Condo Buyers in Baltimore

Buying a condo in Baltimore is a great choice for first-time homebuyers and new investors. The process is almost the same as buying a single-family home, and you can finance your purchase with many of the same loans. However, condos pose key differences that you’ll need to know. When you own a condo, you share ownership of common areas, pay HOA fees, and must adhere to the HOA’s rules. Here’s everything you need to know about buying a condo for the first time in the Baltimore area

5 Tips For First-Time Condo Buyers

  • Depending on your budget and eligibility, you can buy a condo with conventional, FHA, VA, or USDA loans.
  • Evaluate the condo association’s financial health and management before you commit to ensure stability and avoid unexpected fees.
  • Understand HOA fees, rules, and CC&Rs to anticipate ongoing costs and restrictions on property use.
  • Inspect the property and common areas thoroughly to assess the quality of amenities and maintenance.
  • Assess the location’s proximity to public transport, schools, and shopping for convenience and potential resale value.

Understand Your Needs: Size, Amenities, Location

Start the condo shopping process by determining the ideal size based on your lifestyle. Average condos typically range from 700 to 1,200 square feet, making them smaller than single-family homes. However, you can find them with three or more bedrooms.

Next, prioritize amenities that enhance your living experience, like on-site gyms or community spaces, as these can greatly impact monthly HOA fees.

Location is everything, so don’t forget to consider proximity to your needs. Nearby amenities like public transportation, schools, and shopping areas affect daily convenience and can potentially affect resale value.

Explore the Best Condos in Baltimore

Once you know what you want from a condo, you can narrow your search to popular condo communities in Baltimore. Here are a few suggestions to get you started. 

Four Seasons Private Residences

Nestled in the heart of Harbor East, the Four Seasons Private Residences in Baltimore redefine condo living.

If you have an eye for luxury, you’ll appreciate the expansive floor plans and upscale finishes that cater to various lifestyles. This vibrant location offers stunning waterfront views and access to unique amenities, like a rooftop pool and 24-hour concierge service.

Located in one of Baltimore’s wealthiest neighborhoods, these condos are expensive outliers compared to the more affordable prices you’ll see in other buildings. 

Harborview Tower

Harborview Tower epitomizes urban elegance, offering an ideal blend of luxury and convenience in Baltimore’s Inner Harbor.

Units feature modern finishes and stunning waterfront views. Prices range from approximately $220,000 to $1 million, catering to various budgets. With amenities like a fitness center and rooftop terrace, Harborview Tower enhances your urban living experience in the heart of Charm City.

Silo Point Condos

Located in the heart of Baltimore’s historic waterfront, Silo Point Condos offers an exceptional living experience with breathtaking views of the Inner Harbor and city skyline. If you want to buy a condo for your first home, this location provides modern amenities like a fitness center, rooftop pool, and 24-hour concierge service.

With various floor plans available, you can choose what fits your lifestyle, whether a spacious one-bedroom or a larger three-bedroom unit. Plus, the prime location near restaurants and fun things to do makes Silo Point a good investment for your future.

Locke Landing

Often regarded as one of the best condo communities in Baltimore, Locke Landing offers a blend of modern living and urban convenience. With a variety of units priced between $400,000 and $500,000, it’s an attractive option for first-time buyers seeking affordable urban living.

Learn More About the HOA & Bylaws

Make Sure You Know the Condo Community's Rules

After choosing a condo, it’s crucial to understand the rules and bylaws set by the homeowners’ association before you make an offer. It’s crucial to factor in condo fees, like the HOA fee, which can vary considerably and impact your overall budget. Additionally, inquire about any upcoming special assessment projects, as these can lead to unexpected costs later on.

Rules & Bylaws

Understanding the rules and bylaws of a condominium community will ensure you’re completely aware of your rights as a condo owner.

Review the homeowners association (HOA) covenants, conditions, and restrictions (CC&Rs) to grasp the rules and regulations governing property usage, modifications, and community standards. Be aware of common restrictions, such as noise limitations, pet policies, and parking regulations, as they can considerably impact your lifestyle.

Condo Fees

Condo fees cover maintenance of common areas, landscaping, and shared facilities like pools and gyms. They also can contribute to other shared expenses like community staff and local taxes. 

Understanding the homeowners association (HOA) budget is important because it reveals how fees are allocated and whether there are enough reserves for future repairs or emergencies. You should also research the HOA’s history of fee increases, as typical annual hikes of 3-5% can impact your monthly mortgage payment.

Be aware of additional costs like special assessments, which can further increase your financial commitment. Attending HOA meetings can provide valuable insights into current regulations and community governance.

It’s also important to know what’s not covered by condo fees so that you can budget appropriately. For example, while the condo building will have a master insurance plan, individual condo insurance isn’t covered.

Secure Financing

When you’re ready to secure financing for your condo, consider the different loan options available, such as conventional, FHA, VA, and USDA loans. Each type has its own requirements and benefits, which can affect your eligibility and mortgage terms.

Buying a Condo With a Conventional Loan

A conventional loan is a mortgage not backed by a government entity, such as the FHA or VA, and is typically offered by private lenders. Lenders may require stricter criteria for financing approval than they would for a house, such as a minimum of 50% owner-occupancy in the building. Due to perceived risks, condos could have higher interest rates.

A down payment usually ranges from 5% to 20%, although down payments less than 20% will require mortgage insurance. 

Buying a Condo With a FHA Loan

An FHA loan is a government-backed mortgage insured by the Federal Housing Administration, designed to help buyers with lower credit scores or smaller down payments qualify for homeownership. 

Many first-time condo buyers often find that an FHA loan can be an attractive option thanks to its low down payment requirement of just 3.5%. However, at least 50% of the units must be owner-occupied, and the building must be FHA-approved, which means it has to meet financial and structural criteria.

Buying a Condo With a VA Loan

Buying a condo with a VA loan can be a significant advantage for active-duty service members and eligible veterans. 

With benefits like a 0% down payment and no private mortgage insurance (PMI), buying a condo becomes more accessible. However, you must verify the condo is in a VA-approved project, which you can check on the Department of Veterans Affairs website.

The homeowners association (HOA) should also meet VA condo requirements, including a minimum owner-occupancy rate of 50%. Additionally, the condo must be used as your primary residence. 

Buying a Condo With a USDA Loan

While it’s technically possible to buy a condo with a USDA loan, it’s rare because the property must be located in designated rural or suburban areas

USDA loans offer 100% financing, making them an attractive option if you’re eligible. To qualify, the condo must be in a designated rural area, and your household income shouldn’t exceed 115% of the area’s median.

Frequently Asked Questions

Common Questions About Condos

Should You Put 20% Down on a Condo?

There are pros and cons to putting down 20% on a condo. A lower down payment may still help you secure a loan without stretching your budget, but a higher down payment will reduce your monthly payments. 

What Floor of a Condo Is Most Desirable?

There are many different arguments when choosing the right floor of a condo. Those on higher floors tend to be above street noise and offer better views; however, higher floors can be harder to get to. Lower floors offer enhanced accessibility and tend to cost less than higher-floor units. 

What Is the Disadvantage of Buying a Condo?

When you buy a condo, you might face ongoing HOA fees that can strain your budget. You may also encounter strict regulations, noise from neighbors, and possible difficulties with financing, all of which could limit your freedom.

Additionally, there is a matter of selling a condo. Because condos cater to a particular lifestyle, finding the right buyer can sometimes be challenging. Those with growing households may need to search for a townhouse or single-family home, leaving condo sellers a limited pool of buyers to appeal to. 

Are You Ready to Make Your First Condo in Baltimore?

Buying a condo for the first time can be a rewarding investment but requires careful consideration. You can make an informed decision by understanding your needs, exploring available options, and researching the community. Don’t forget to secure the right financing and assess the condo association’s stability. Taking these steps will help guarantee your shift to condo living is smooth and beneficial in the long run. In the end, using these helpful tools will make your purchase smoother and make moving to Baltimore more enjoyable. 

Comments are closed.

About our blog

Our agents write often to give you the latest insights on owning a home or property in the Greater Baltimore area.

Contact Us Now

*
*
*
*