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Interested in an FHA loan and a condo? Don't miss this!
Not all condos are created equally... at least according to HUD/FHA guidelines. If you're shopping for a condo using an FHA loan, here's what you need to know.
If you're looking to take advantage of an FHA Loan and are considering a condo, you should be aware that not all condos are eligible for FHA Loans.
A condo can be a great choice for a first-time buyer. Also great for first-time buyers? FHA Loans. Many FHA Loans require down payments as small as 3.5% of the purchase price of the property. They also create loan opportunities for people with less-than-perfect credit or other financial challenges.
The low down payment comes with some strings attached, of course, mostly in the form of an upfront mortgage insurance premium as well as an annual mortgage insurance premium charged monthly. (Full details about FHA Loans can be found on the HUD website, here: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/fharesourcectr.)
In addition to this catch, FHA Loans are only available for FHA-approved condos. The FHA wants to help buyers invest in assets which are worthy of investment in the first place. FHA requirements for condos are fairly stringent, and by some estimates upwards of 50% of condo associations fail to meet FHA guidelines.
Knowing this up front can save you a lot of time and hassle condo shopping. While you should consult with condo associations to determine whether or not they're approved for FHA loans, you can also use an online resource to help you with your search. Here is a link to an online database of FHA-approved condos:
U.S. Department of Housing and Urban Development (HUD) FHA Condo Search:
https://entp.hud.gov/idapp/html/condlook.cfm
Hopefully, this will help you in your pursuit to find an FHA-approved condo!
I'd love to help you locate the perfect FHA-approved condo. Get in touch with me today to start your search: bit.ly/laurakeyinfo
FHA Loan Limits in Los Angeles County
Thinking of buying a home and going with an FHA loan? Here are the FHA loan limits for Los Angeles County of California. For information on other states, please feel fee to contact me at Laura.A.Key@gmail.com LOS ANGELES COUNTY FHA LOAN LIMITS (Median Sales Price $535,000)
- Single Family $729,750
- Two Family $934,200
- Three Family $1,129,250
- Four Family $1,1403,400
FHA loans have been helping people become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) - which is part of HUD - insures the loan, so your lender can offer you a better deal.
- Low down payments
- Low closing costs
- Easy credit qualifying
What does FHA have for you?
Buying your first home? FHA might be just what you need. Your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
Want a fixer-upper? FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs - all in one loan.
Financial help for seniors Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer "yes" to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
Want to make your home more energy efficient? You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
How about manufactured housing and mobile homes? Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products - one for those who own the land that the home is on and another for mobile homes that are - or will be - located in mobile home parks.
Ask an FHA lender to tell you more about FHA loan products.