Today’s Realities on Getting a FHA Loan on a Condo or Townhome is a post from: FHA,VA and Conventional Home Loans in all 50 States

If  you are thinking about buying a condo or townhouse using a FHA Loan, you will need to know if that condo or townhouse is FHA approved before making your offer.   You cannot get a FHA Loan on just any condo out there (for the purposes of this post whatever applies to condo’s also applies to townhomes).   The condo has to be on the FHA approved condo list.  You can also get a spot approval from  your mortgage company on a condo that not on the FHA approved list. 

So how do you find out if a condo is FHA approved?  Sometimes it will mention this fact in the listing for the property.  But most likely you’ll need to ask your loan officer.  Please feel free to call or email me and I can look this up for you.  If the condo is on the list, feel free to make offers on that property.  You should have no trouble getting a FHA Loan on the condo if you have been pre-approved for a FHA Loan. 

If the condo is not on the FHA approved condo list, there is a longer and more involved process for getting the condo project approved.  You can get a spot condo approval or get the entire condo project approved.  Either way you will have to gather lot’s of documentation on the condo project from the HOA association.  With a spot approval the mortgage company originating your loan can assist.  With a full FHA approval for an entire condo project  you will have to send that documentation to the FHA regional offices for approval.  This process can take many weeks and will take some effort.  The condo will have to adhere to FHA condo guidelines such as 51% or greater units occupied by owners, satisfactory level of cash reserves held by the HOA, no litigation, only a certain % of total loans in condo project FHA, and much more.  Give us a call as we may be able to assist in this. 

Starting October 1st FHA condo spot approvals will be going away.   The entire condo project will have to be FHA approved.   However the mortgage company originating your loan will be in charge of the approval and you will not be sending a package to FHA.

Condo’s can be the right type of property for many FHA buyers.  The advantages are:

• You can often find condo’s in more desirable locations where single family homes are out of reach in terms of price (close to good schools, beaches, upscale neighborhoods)
• They require less maintenance than single family homes
• If you travel often, condo’s can be more secure in many cases

Of course the disadvantage is that you have group ownership and a Home Owners Association (HOA).  This can sometimes present issues.

Please feel free to email or call if you have any questions.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer (and VA specialist)

rob@affinity-financial.com

858-922-7899

Related posts:

1. Importance of Getting a Pre-Approval Before House Shopping
2. Using a FHA 203k Fixer Upper Loan to Buy a Condo
3. Keys to Buying a Condo With an FHA Loan In This Market

Importance of Getting a Pre-Approval Before House Shopping is a post from: FHA,VA and Conventional Home Loans in all 50 States

The very first thing you should do when in the market for home is the get a full  loan pre-approval.  This is true regarding FHA, VA or conventional home loans.  This is very important because your don’t want to waste a lot of time searching for a property until you know for sure if you can get approved and what the maximum amount you can approved for is.  This can be accomplished in a matter of minutes and then you will have the peace of mind that if you make and offer on a home and it gets accepted you will have no problem closing.

Below is a list of what we will do to fully approved your for your loan:

1. We will go through a loan application (most often over the phone).  It is best for me to talk to you and go through the application vs. having you fill one out as this way we get it right the first time and save a lot of time.
2. We will do a credit check
3. I will ask you to send me your last 1 months paystub copies, last 2 years w-2′s and bank statements documenting where you will be getting the down payment.  If you are self-employed we will need your last 2 years of federal tax returns all pages.

After those simple steps I can issue you a pre-approval letter.  In the call we will also discuss the maximum loan amount that you qualify for and what the total payment will be (mortgage + property taxes + home insurance).

If you have any questions or would like to get a fast pre-approval give us a call or email.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer

rob@affinity-financial.com

858-922-7899

Related posts:

1. FHA Loans and Termite Work

FHA Loans and Termite Work is a post from: FHA,VA and Conventional Home Loans in all 50 States

Most older houses have some level of termite damage that exists in the house structure.   And most purchase offers made by buyers call out as a condition to their offer that the buyer will do a pest inspection and the seller will be responsible to fix any section 1 termite damage.  Section 2 termite damage is more serious and not generally paid for by the seller, but of course can be negotiated to be cleared by the seller.

In the old days of FHA loans you had to get a termite clearance before the lender would fund your loan regardless of whether you called for a termite inspection in your purchase contract or not.  But these days if you do not ask for a termite inspection in your purchase contract, you will not have to get a termite clearance to get the FHA loan.

Now if you feel that your seller will pay for the termite work, it can be helpful to call out the termite report inspection as a contingency of your purchase.  But if you feel the seller will not pay of the termite work, you may want to leave the termite inspection out of the contract.  Because once it is in the contract, you will need a clearance before you close.  And if the seller will not pay for the work, the buyer will have to pay for it.

If you have any questions about this topic or any other questions about FHA, VA or conventional home loans, feel free to email or call me.  My contact info is below.

Warm Regards,

Rob Chomentowski

Sr. Loan Officer

rob@affinity-financial.com

858-922-7899

Related posts:

1. Home Loans For Investors