WORDS I LIKE — Truth beats comfortable assumptions.
You think condo approval comes down to your credit and income.
Check the boxes, get the nod — that's the story you've been told.
But there's a number you never see coming: the building's insurance bill.
It shows up in your HOA dues.
Those dues count against you too.
Denver condo insurance premiums just jumped as much as 40% this year.
The Piece Nobody Talks About.
Lenders look at your debt-to-income ratio, or DTI — what you owe each month divided by what you earn. Your mortgage payment counts. So does anything the building charges you every month, HOA dues included.
Denver-area condo and multi-family insurance premiums are up 20 to 40 percent this year, per Homes.com News. Hail and wildfire risk are driving it. Carriers are raising rates or leaving the state, and HOA boards pass the cost straight to owners.
Most buyers assume approval hinges on their own numbers. What's actually true: the building's insurance bill can push a well-qualified buyer's DTI past the limit. That can happen before an offer is even written.
This hits hardest on move-up buyers stretching for a specific unit. A $150 jump in dues can be the difference between approval and a denial three weeks in.
The dues figure on the listing sheet is often stale. The building's current insurance renewal tells the truer story.
THIS WEEK'S TAKEAWAY
Ask for the building's current insurance declarations page before you write an offer — not last year's dues number.
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PS
Shopping condos right now? Reply "HOA" and I'll send you the two questions to ask before you write the offer.
No spam. No sales pitches. Just clarity.
— Neil Christiansen, Certified Mortgage Advisor
