Buying a Condo in Los Angeles
Buying a condo in Los Angeles can be a smart move, whether you want a low-maintenance lifestyle, a second home, or an investment property. Condos are different from single-family homes in several ways, and understanding those differences is key to making a confident and informed purchase.
At Philippe Properties, we guide buyers through every detail, from reviewing HOA documents to navigating inspections and negotiations. Our goal is to make your purchase clear, organized, and successful.
How Condos Differ from Houses
Condos involve shared ownership of common areas and community amenities, managed by a homeowners association (HOA). Because many units may look similar, pricing depends on view, floor level, upgrades, and the overall financial health of the building.
Differences include:
Shared Amenities: Pools, gyms, and security services are major features that appeal to condo buyers.
HOA Fees and Rules: Monthly fees cover maintenance, insurance, and shared services, while HOA rules govern pets, rentals, and use of common areas.
Pricing Strategy: Each unit’s value depends on building demand, view, and condition, not just square footage or lot size.
Questions to Ask Before Buying a Condo
Before making an offer, understand how the HOA operates and whether the community is financially stable. Ask these key questions to protect your investment:
Financial and HOA Health
• What are the monthly HOA fees and what do they include, such as water, trash, or amenities?
• Have fees increased recently, or are any increases planned? Are there any pending assessments?
• Is there a reserve fund for future repairs and emergencies?
• Can I review the HOA’s financial statements, budget, and reserve study?
• Is there earthquake insurance?
• Is the building well managed, with a healthy reserve fund and up-to-date maintenance plan?
• When was the last reserve study completed?
• Can I review recent HOA meeting minutes to check for red flags or upcoming projects?
• Are there any planned capital expenditures or large repairs on the horizon?
Rules and Restrictions
Are there pet restrictions or rental limitations?
What are the rules for renovations inside the unit?
How are community rules created or changed, and who makes those decisions?
Community and Ownership
What is the ratio of owners to renters? High rental ratios can affect property values and financing options.
How well are common areas maintained?
What parking options are available for residents and guests?
Is there storage?
Asking these questions helps you understand the community’s financial condition and whether its lifestyle fits your needs.
Why the HOA Reserve Study Matters
Always request the most recent reserve study and budget breakdown from the HOA. These documents show how prepared the association is for major repairs, such as roof or elevator replacements. A strong reserve fund reduces the chance of surprise assessments and shows that the community is well managed.
Look for:
A reserve fund that is at least 70 percent of the recommended amount
Recent updates to the reserve study, ideally within the past five years
A clear plan for covering future maintenance costs
Hidden Problems to Watch for Before Buying a Condo
Pay Attention to Natural Light
First-floor condos can sometimes feel darker than they appear during showings, especially when all the lights are on. Natural light affects your quality of life and your property’s resale value. Make sure to turn off all the lights when viewing potential condos.
Evaluate Construction Quality
Some buildings are better constructed than others. Thin walls can make you hear every step or sound from your neighbors. Look for buildings with solid construction, soundproofing, and quality materials — these details make a big difference in day-to-day comfort and resale appeal.
Review Flooring Restrictions
If you plan to replace carpet with hardwood floors, check the HOA rules first. Many associations restrict flooring changes, especially on upper levels, because of noise concerns. Some allow it only with sound-insulation underlayment that meets specific standards. Always review the CC&Rs, rules, and bylaws before planning any upgrades.
Ask About the Roof and Building Maintenance
Even if there aren’t any pending special assessments, an old roof or deferred maintenance could lead to large expenses later. Review the HOA’s maintenance history and ask when major components such as the roof or plumbing — were last replaced.
Review HOA Reserves and Financial Health
Healthy reserves protect you from unexpected costs. Ask your agent and CPA to review the HOA budget and financial statements. Look through the meeting minutes to identify any red flags or upcoming projects that may impact future assessments.
Assess HOA Management Quality
A well-run building reflects pride of ownership. Make sure the HOA is responsive, organized, and managed by a reputable company. Poor management can lead to delayed repairs, frustrated residents, and declining property values.
How We Help Condo Buyers
Buying a condo is different from buying a single-family home. You’ll need someone experienced in evaluating HOA documents, building construction, and long-term resale factors.
This is where Philippe Properties comes in, we’ll help you navigate every step with clarity, protect your investment, and make sure you purchase with confidence.
Our team specializes in helping condo buyers across Los Angeles, including Santa Monica, Venice, Brentwood, Westwood, Beverly Hills, Playa Vista, Mar Vista, Malibu, Culver City, and the Westside. We provide:
Accurate pricing analysis based on view, floor, and recent comparable sales
Review of HOA documents to identify restrictions and assess financial stability
Coordination of inspections, general, chimney, termite, mold, HVA
Negotiation and transaction management from offer to closing
We help you understand every aspect of your purchase so you can move forward with confidence, knowing the property and its HOA meet your expectations.
Your Los Angeles Condo Experts
Whether you are purchasing your first condo or adding another property to your portfolio, Philippe Properties is your trusted local resource. We help you evaluate every detail, anticipate potential challenges, and make informed decisions that align with your goals.
Frequently Asked Questions About Buying a Condo in Los Angeles
What makes a condo “warrantable,” and why does it matter?
Warrantable condos meet Fannie Mae/Freddie Mac project standards, which lenders verify with a condo questionnaire. If a project is non-warrantable (for reasons like litigation or weak financials), your loan options narrow and rates/down payment may be higher. Fannie Mae Selling Guide+2Fannie Mae+2
What is the condo questionnaire, and who fills it out?
Your lender requests a standardized questionnaire from the HOA or management company to assess budget health, reserves, insurance, owner-occupancy, delinquencies, litigation, and more. This is routine and often required by underwriters.
Can I use an FHA or VA loan for a condo?
Yes—if the condo is FHA- or VA-approved, or eligible for FHA single-unit approval. You can check approval status on HUD/VA lookup tools or through your lender. Veterans United Home Loans+3HUD+3DSLD Mortgage+3
How do HOA lawsuits affect financing?
Active litigation (construction defects, disputes, etc.) can make a project non-warrantable. That doesn’t kill every deal, but it can limit lenders and increase costs; many buyers either pivot lenders or negotiate accordingly.
How Are Special Assessments Approved?
In most Los Angeles condominiums, the HOA board proposes and votes on special assessments. Under California law, the board may levy up to 5% of the annual budget without member approval. Anything beyond that usually requires a vote by the majority of owners, often done by secret ballot at a scheduled meeting.
Rules can vary between buildings depending on the HOA bylaws and Davis-Stirling Act requirements, but larger assessments nearly always require owner participation and transparency.
Why Should Condo Buyers Care?
Special assessments can have a big financial impact and often catch buyers off guard. Reviewing HOA meeting minutes, budgets, and reserve studies before purchasing can reveal if an upcoming assessment is likely.
Buildings with aging systems, deferred maintenance, or low reserves are more prone to new assessments. Understanding the HOA’s financial condition helps buyers anticipate potential costs and negotiate accordingly.
In summary: Special assessments are a normal part of condo ownership in Los Angeles, but they can greatly affect your bottom line. Always review the HOA’s financials and ask questions before making an offer to avoid unexpected expenses later
What Is California SB 326 and How Does It Impact Los Angeles Condo Buyers?
California’s SB 326, passed in 2019, requires condominium communities with three or more units to complete regular structural safety inspections of balconies, decks, patios, and other raised walkways. The purpose is to prevent accidents caused by deterioration, moisture damage, or weak structural components.
Existing condo buildings must complete their first inspection by January 1, 2025, and repeat it roughly every nine years. Newly built condos must undergo their initial inspection within six years of receiving their occupancy certificate.
This law is particularly significant in Los Angeles, where many mid-century and older condo buildings feature exposed wood framing that can weaken over time from sun and rain.
Who Oversees These Balcony and Safety Inspections?
Responsibility falls on the homeowners association (HOA). The HOA must hire a licensed structural engineer or architect to carry out inspections, ensure any necessary repairs are made, and maintain written documentation for compliance.
This regulation reinforces the HOA’s duty to keep shared structures—like balconies and elevated walkways—safe and properly maintained.
How Can SB 326 Affect Property Values and Condo Financing?
Buyers should confirm that the building’s SB 326 inspections have been completed and that any repair recommendations were addressed. When a property fails to meet safety requirements, the HOA could face special assessments, which directly affect homeowners’ costs.
Lenders also prefer buildings that are up-to-date with inspections, as it signals lower long-term risk. In contrast, noncompliance can lead to loan delays, limited financing options, and reduced resale value.
Why Should Buyers in Los Angeles Pay Attention to SB 326?
Complying with SB 326 ensures the building is structurally sound, protects residents from liability, and helps preserve property values. For buyers, it’s a critical part of due diligence—especially in Los Angeles, where HOA management quality and building age can vary widely. Always ask for the inspection report before you remove contingencies or finalize your offer.
Does Los Angeles require seismic retrofits for some condo buildings?
LA’s soft-story retrofit program targets certain older wood-frame buildings with open ground-floor parking. Confirm if the building is subject to retrofit and whether work is complete or budgeted. LADBS+2LADBS+2
Are short-term rentals (Airbnb/VRBO) allowed in condos here?
Short-term rentals depend on both city regulations and HOA bylaws, and rules vary from building to building. In Los Angeles, the Home-Sharing Ordinance limits short-term rentals to a host’s primary residence and typically requires registration with the city. Rentals shorter than one month are generally restricted, and many HOAs prohibit them entirely. Nearby cities such as Beverly Hills and Santa Monica have adopted even stricter bans. Always confirm both city ordinances and HOA rules before assuming a property can generate rental income. Los Angeles City Planning+2Los Angeles City Planning+2
How Do Owner-Occupancy Ratios Affect Condo Loans in Los Angeles?
When applying for a condo loan in Los Angeles, lenders look closely at owner-occupancy ratios—the percentage of units that are owner-occupied versus rented. This ratio helps lenders measure community stability and predict risk.
Most lenders, including Fannie Mae, Freddie Mac, and FHA, prefer that at least 50% of the units in a condo building are owner-occupied. Some exceptions allow approval with as low as 35% owner occupancy if the HOA can show strong financials, healthy reserves, and low delinquency rates.
Buildings that fall below this threshold may face limited financing options or lose FHA and VA eligibility. When a property no longer qualifies for these loan programs, it becomes harder for future buyers to get financing, which can impact resale value and demand.
For conventional loans on primary residences, the rules can be more flexible, but a low owner-occupancy ratio can still reduce loan options and delay approval.
Why Do Rental Caps Matter for Condo Loans and Resale Value?
Rental caps limit how many units in a condo complex can be rented out at one time. Lenders favor buildings with clear rental restrictions because they indicate a stable community with more long-term owners.
High owner-occupancy levels and well-managed rental caps tend to protect property values and improve financing options. Lenders view owner-occupied buildings as lower risk since residents are more likely to maintain their homes and remain financially responsible.
In contrast, buildings with too many rentals or no rental limits often face tougher loan approvals, a smaller pool of eligible buyers, and stricter requirements from FHA, VA, and conventional lenders. These factors can lower resale potential and overall property appreciation.
Do Condo Loans Have Higher Interest Rates Than Single-Family Homes?
Yes, condo loans in Los Angeles generally come with slightly higher interest rates than single-family home loans. Lenders view condos as higher risk because ownership is shared within a building, and overall value depends on the HOA’s financial health and maintenance.
Most condo loan rates are about 0.125% to 0.75% higher than comparable single-family home rates. Lenders factor in potential risks such as deferred maintenance, low reserves, or pending HOA litigation that could affect the building’s stability.
How Much Down Payment Do You Need for a Condo in Los Angeles?
Most lenders require a larger down payment for condos—typically 20% to 25% for the best terms. By contrast, single-family homes may qualify for as little as 5% to 20% down.
Government-backed loans such as FHA and VA can allow smaller down payments if the condo project is approved, though added risk may increase other requirements. A strong financial profile can help buyers secure better rates and terms.
What Other Factors Do Lenders Consider for Condo Loans?
Condo financing requires more documentation because the lender reviews both your finances and the HOA’s financial stability. The lender looks at:
The HOA’s budget and reserves
Building maintenance and insurance coverage
Percentage of owner-occupied units versus rentals
In addition, monthly HOA dues are factored into your debt-to-income ratio, which can affect how much you qualify for.
Overall, expect slightly higher interest rates and larger down payments for condo purchases in Los Angeles compared to houses. These differences exist mainly because lenders evaluate both you and the building to ensure the investment is secure.
What insurance questions should I ask before buying a condo in Los Angeles?
When buying a condo in Los Angeles, it’s important to go beyond simply asking whether earthquake insurance is included. You’ll want to understand both the building’s master policy and your own personal coverage responsibilities as a unit owner.
Start with these key questions:
What does the HOA’s master policy cover, and what does it exclude? Confirm the policy type (walls-out or all-in), coverage limits, and deductible.
What type of insurance do I personally need? Typically, condo owners carry an HO-6 “walls-in” policy, which covers what the HOA does not.
What is the master policy’s deductible, and could owners share those costs in a claim?
Does my HO-6 policy include “loss assessment coverage”? This helps cover your share if the HOA’s policy doesn’t fully pay for a claim (like roof or exterior damage).
Does my policy include coverage for personal property, renovations, or high-value items? Ask whether valuables, electronics, or recent upgrades need additional riders.
Does my insurance pay for temporary housing (loss of use) if my unit becomes uninhabitable?
Does my policy include coverage for water backup, sewer overflow, or mold damage? These are common exclusions unless added separately.
How much personal liability coverage do I have, and should I increase the limit?
Is earthquake insurance included or separate, and what are the costs, deductibles, and exclusions?
Are there other riders I should consider, like flood, wildfire, or umbrella coverage?
As a general rule, review the HOA’s master policy with your insurance agent to ensure there’s no overlap or gap between your policy and the association’s.
What types of condo insurance should I consider in Los Angeles?
California condo ownership requires several layers of protection because standard HOA coverage doesn’t extend inside your unit. Here are the most important insurance types to discuss with your agent:
HO-6 Condo (Walls-In) Policy: Covers interior finishes, walls, floors, fixtures, cabinetry—as well as your personal belongings, liability, and temporary living expenses if your home becomes uninhabitable.
Earthquake Insurance: Usually not included in standard condo policies; must be purchased separately, either individually or through the HOA.
Flood Insurance: Required if the property is in a flood zone; otherwise optional but still recommended for certain coastal or hillside areas.
Umbrella Liability Coverage: Adds extra protection above your HO-6 policy limits in case of major claims or lawsuits.
Special Riders for Valuables: Protect jewelry, fine art, collectibles, or high-end electronics that exceed standard coverage limits.
Loss Assessment Coverage: Pays your portion of HOA special assessments for building damage not fully covered by the HOA’s master policy.
Home-Based Business Coverage: Provides limited business equipment and liability coverage if you work from home.
Workers’ Compensation (Domestic Help): If you employ household help for cleaning or childcare, this may be required even for part-time hours.
What Condo Red Flags Can Affect Your Loan Approval in Los Angeles?
When buying a condo in Los Angeles, lenders look at more than just your finances. They evaluate the building’s condition, HOA management, and financial stability. Certain warning signs can delay or block loan approval.
Poor Maintenance: Neglected buildings with leaky roofs, cracked foundations, peeling paint, or aging plumbing suggest underfunded reserves and possible future expenses. Lenders view this as a risk to value and safety.
Low HOA Reserves: A small reserve fund indicates that the HOA may struggle to cover major repairs or emergencies without special assessments. Lenders prefer financially secure associations.
Pending Litigation: Active lawsuits related to construction, management, or safety make lenders hesitant until the issues are resolved.
High Number of Rentals: Buildings with predominantly investor- or tenant-occupied units are perceived as less stable. Lenders favor owner-occupied properties for long-term value.
Insurance or Payment Issues: Missing insurance coverage or a high number of owners behind on HOA dues indicates weak financial management and can cause lenders to decline financing.
What Other Building Issues Should Condo Buyers Watch For?
Structural or Safety Concerns: Foundation cracks, roof damage, or mold can be expensive to fix and may need to be addressed before closing. Always review inspection reports carefully.
Incomplete or Mixed-Use Projects: Buildings that are still under construction or include significant retail or hotel space often do not qualify for standard condo loans.
Weak Financial Oversight: If HOA accounts are poorly managed or not separated properly, lenders may consider the building at risk for misused funds or poor accounting.
By reviewing HOA documents, checking reserve levels, and confirming the building’s condition before making an offer, buyers can avoid setbacks and secure financing for a strong, stable condo investment in Los Angeles.
What documents should I request before removing contingencies in a condo purchase?
Ask for the most recent reserve study and budget, year-to-date financials, insurance certificates, meeting minutes, rules/CC&Rs, any special-assessment notices, SB-326 reports, and (if applicable) retrofit/repair plans with cost allocations. Review all seller disclosures. If the HOA reserves are healthy, you’re in a stronger position. If they’re thin, review carefully; major repairs like an aging roof, could lead to higher fees or special assessments. Review all disclosures and inspection reports. Understand the scope of any issues before removing contingencies, and renegotiate with the seller if credits or repairs are needed.
How do amenities affect monthly dues and future costs?
Pools, gyms, doormen, and large common elements raise operating costs and long-term reserve needs, which can increase dues and the likelihood of future assessments if reserves are underfunded. Lenders and appraisers also consider these costs in qualifying and valuation. Fannie Mae Selling Guide
What should I know about parking, EV charging, and storage?
Verify deeded vs assigned parking, guest parking rules, and whether EV charging is available or planned (and how costs are allocated). Storage policies vary widely—confirm availability and transferability in writing. (Project-specific via questionnaire/HOA docs.)
How can I make my offer stronger on a competitive condo without overpaying?
Pair a fully underwritten pre-approval with project-specific diligence (early review of HOA docs, insurance certificates, and key questionnaires). Tighten timelines only where risk is known; keep inspection and HOA document review contingencies to protect yourself.