how different hoa fees affect your loan
 
How CDD fees can affect your loan when buying a home

I was working with a client who was looking to buy a home with a VA loan and a $150,000 budget.

We looked at many homes and finally she really liked a home in a community that had CDD fees. CDD stands for is Community Development District Fee. A CDD is when the developer of a community added the cost of the infrastructure, (electrical, roads, sewer systems, sidewalks, play grounds, community pools, tennis courts, water parks, etc.) into the cost of each home site. The charge is usually apportioned to the size of each home site and it is included in the property tax bill as a non-ad valorem assessment. (The CDD charge is in addition to your property taxes.)
 
In my client’s case the CDD fee was $2,400/ year in addition to the $1,700/year in property taxes and the community also had HOA (homeowners association) fees. 
 
When contacting her lender to see how the CDD fee will affect her loan, she found out that her loan value will diminish since the CDD charge will add to her monthly mortgage payment $200/month in addition to the HOA fees.
 
My client had to walk away from that property due to the financial situation. The happy ending was that in the end I found her another home that she was very happy with it. If you are considering a community with CDD fees make sure you talk with your mortgage lender about it and find out how it will affect your loan. 
 
And don’t forget when you are ready to buy a home in Orlando, call me. It will be my pleasure to assist you and find the home that is right for you, financially and emotionally.