What You Should Know About FHA Loans
Many buyers these days, especially first time buyers, are attracted to FHA loans, and with good reason.
Down-payment money is often a problem, and FHA only requires a 3.5% down-payment (and it can be gift money).
There are a couple of things you should know, especially if you are looking at condos:
1. FHA requires that the complex be FHA approved. Or, if it is not, you can get what is called SPOT APPROVAL which takes more time and adds to the process time frame. And there are no guarantees.
2. The owner occupancy of the complex must be 51% or better in order to use an FHA loan.
3. There is a 3-year guideline for conversions. Properties converted from apartments to condo in the last 3 years will not likely qualify for FHA financing.
Be sure to check with a qualified loan officer to make sure you understand the guidelines, as some properties that may interest you and fit your budget may not qualify for this loan.
Tags: Buying a Home, FHA, First Time Buyers, Real Estate
Not sure if you are aware but HUD/FHA SPot approvals have been non-existant for almost two months. June 12th HUD released Mortgagee Letter 2009-19 that ended this process. The condo project must be approved and a full application by the condo project must be submitted. This may result in a longer escrow if the listing agent has not done their due diligence and requested the project to get HUD approved. If you have any questions feel free to call or email. Would you consider writing some guest posts on my blog?
I like the way you write! Nice blog.
Good point! Thanks!
Good point! Thanks!
Nice blog! Keep up the good work.