When applying for a loan for a newly built condo versus a condo that is over 10 years old in Columbus, you may find that the results of your pre-approval can differ even with the same budget. New constructions typically get approved without issues, while older buildings may receive a non-warrantable designation, limiting the loan options available. It's important to understand where this difference comes from.

The criteria for a non-warrantable condo designation are clear. If the ratio of units with unpaid dues exceeds 15%, if the rental unit ratio is excessive (generally over 50%), if the reserve fund is less than 10% of the budget, if there are pending lawsuits, or if the commercial space ratio is too high, conventional loans become difficult to obtain (Fannie Mae, Freddie Mac Selling Guide). New buildings generally do not exceed these criteria, while older buildings often see an increase in rental unit ratios or depletion of reserves over time.

Comparing condo prices in Columbus, the median price for condos in Q1 2026 is $213,000, which is stable compared to the previous year. Other reports indicate prices around $250,000. The overall median sale price in Central Ohio is $352,000, which is a 0.6% increase, indicating that condos have a significant price advantage over single-family homes.

When comparing management fees between new and older buildings, new constructions usually have sufficient reserves, leading to stable management fees, while older buildings may have fluctuating fees depending on their reserve status. The median management fee for condos in Ohio is $368 per month, while the average in Central Ohio is $282 per month, which has increased by 14% compared to two years ago.

The Ohio Condominium Law (ORC 5311) requires management associations to reflect reserves in their budgets, but this can be deferred annually through member voting. The risk of receiving a non-warrantable designation increases for older buildings that have repeated deferrals. New buildings often have developers who fill initial reserves, making them relatively safer.

In terms of rental demand, there is not much difference between new and older buildings. The average rent in Columbus is $1,487 per month, with one-bedroom units averaging around $1,077. However, due to a high supply of new units, the recent rent increase has been limited to 0.7%, and the rental market appears to be cooler than the national average.

Essential items to check before applying for a loan include:

• Directly confirm with the bank whether the property is warrantable
• Reserve fund accumulation rate and history of deferral votes
• Financial statements of the management association for the past 2-3 years
• Rental unit ratio and rental restriction regulations
• Minutes from management meetings regarding lawsuits or disputes

If your family places importance on school districts, condos near Dublin or Upper Arlington are often mentioned among Korean families for their good school reputations. However, school district boundaries can change, so it's safer to verify assigned schools using GreatSchools ratings. If you are moving to Columbus from another state, it's also wise to consider that property tax rates and insurance structures may differ from your previous residence.

Don't overlook the minutes from management meetings. Requesting the last 2-3 years can help you check for any lawsuits, disputes, or discussions about repeated special assessments, which can reveal the actual condition of the building that financial statements may not show.

There are also differences in insurance costs between new and older buildings. New constructions often have the latest fire and plumbing systems, leading to relatively lower insurance rates, while older buildings may have higher rates due to outdated systems. Checking how much the insurance fee constitutes in the management fee bill can also be helpful.

Rental restriction regulations can also differ between new and older buildings. Developers of new buildings may restrict rentals for the first few years, while older buildings may already have a high rental unit ratio, which could limit new buyers' rental plans.

The criteria for determining whether a building is new or old ultimately depend on how diligently the management association has built up reserves. It's safer to check the warrantable status during the loan pre-approval stage rather than just comparing listing prices. This article is intended for general informational purposes, and it is advisable to consult with real estate professionals and loan officers before making any actual contracts.