MAKING A DUPLEX INTO A CONDOMINIUM - Posted by JOHN PEZZUTI

import · January 23, 2002, 2:27pm

Posted by William Bronchick on January 24, 2002 at 09:18:12:

The cost of convert a duplex into a condo is not worth it anyway. If they are side by side, just get the lot split into two separate legals and sell them as 1/2 duplexes.

import · January 23, 2002, 2:27pm

Posted by JOHN PEZZUTI on January 23, 2002 at 15:27:59:

I noticed a previous question about turning a duplex into a condominium. Bill answered this question and I would like to add some more information to it.
One significant problem with making a duplex into a condominium is trying to get a new loan on it.
Lenders have certain criteria for what qualifies as a condominium. Most lenders won’t lend on a condominium that has less than 4 units. Lenders also want to see an association that has been in existence for at least a year.
This leaves you with a property that is more difficult to sell because you will need a non-conforming mortgage loan. These types of loans have higher interest rates than comforming loans and usually require the buyer to have a better credit score or higher down payment amount than conforming loans.