Buying a Condo? Lenders now requiring HO-6 coverage

This is for new condo buyers. Previously only some condo owners bought renters insurance. Renters insurance is to cover the contents of your property, and its actually very affordable. The condo fee payment you make every month covers the structure, the maintance of the building and the amenities.

Previously banks did not require renters insurance or HO-6 (as the insurance companies call it), for your condo purchase or refi. The change you will see, is that banks are now requring HO-6 coverage to be approved for your condo purchase. The policy is usually a couple of hundred dollars a year. Most banks will let you pay for it at settlement, and then you get billed for it annually.

It has always been a great idea to have, but now you will see it as a requirement, not an option. Most insurance carriers can give you a quote without seeing an appraisal. They usually generate that from baisc information about the property and the loan amount. This will apply to all condos, no matter which loan product you use.

Alex Echeandia Sr. Mortgage Broker, 301-881-8900 x208
Fairfax County Homes