The properties of Lake Havasu are unique in that they consist mainly of second homes owned by retirees. The community itself has been directly marketed to this demographic group during its early stages of development, due to the proximity of the river which creates an atmosphere and a nautical availability combined with the remoteness of the river. ;location. As a small town located at a great distance from any surrounding city, Lake Havasu functions as an island in the middle of the desert and is perfect for those wishing to get away on their own for an extended and relaxing vacation. The Lake Havasu community remains voluntarily small and untouched by most major development projects or retail chains in order to remain an area attracting a very specific lifestyle. Lake Havasu residents usually come for a few months each year and live either in rented homes or in homes they own. Landlords will often try to rent these homes for the rest of the year to offset mortgage payments.
The unique nature of the Lake Havasu real estate market involves some federal regulations that apply everywhere, but many people do not realize that they are in place because they are only taken into account in types. specific communities. The most surprising rule about Lake Havasu is that in order to buy a condominium with a conventional loan, the complex can not contain more than 51% of second homes. This means that if the complex itself belongs to more than half of the people who are not permanent residents, you can not use a traditional mortgage to pay for your home. In addition to these regulations, the complex can not represent more than 20% of homes using conventional mortgages to pay for their own units. Although it may seem odd that the methods used to pay for neighboring units, which have nothing to do with you, affect your own ability to get a mortgage loan, it is actually about A regulation that protects the complex as a whole from failure. due to defects. The settlement ensures that, even in the event of a decline in real estate, the majority of units will have been paid in cash or will have sufficient equity to discourage abandonment.
The Lake Havasu condominiums are directly affected by these rules because the majority of small houses and homes in the area are not considered as principal residences and are actually vacation homes. This anomaly affects the areas you may want to buy, which are "tourist areas" where people will not live permanently. These types of residences are traditionally easier to abandon and exclude than principal residences. Thus, in complexes where the actions of a neighbor affect the rest of the community, measures must be taken to protect the whole. As a rule, condominiums in Lake Havasu are paid in cash or through another form of mortgage guaranteed by a local credit institution.