FHA approved condos <a href="https://paydayloansohio.net/cities/gahanna/">online Gahanna payday loan</a> — Complete 2021 guidelines and updates

FHA approved condos

FHA approved condominiums meet the mortgage insurance guidelines of the Federal Housing Administration and are eligible for FHA mortgage financing. They generally feature a high concentration of owner-occupied units, a strong condo aociation balance sheet, and are free of litigation.

FHA mortgage rates for condos

FHA loans are an important part of today’s housing market — both for single-family homes and for condos.

For many US borrowers, FHA loans are the cheapest, most-acceible low-down payment home loan.

The FHA minimum credit score requirements are as low as 580 for a 96.5 percent loan, and 500 for a 90 percent loan.

In addition, FHA mortgage rates are typically about .25 percent lower than conventional (non-government) loans. However, their mortgage insurance requirement of 1.75 percent upfront and a monthly amount that varies according to your loan term pushes the actual cost higher.

When you compare FHA condo loans with other programs, include the mortgage insurance in your calculations.

How to get a condo “FHA approved”

In order to get a condo building “FHA-approved”, the FHA requires specific documentation which varies based on the condo building’s history.

Getting a condo “FHA-approved” can take as little as two weeks or more than three months.

Note that getting a condo FHA-approved is not the home buyer’s responsibility. Typically, the responsibility falls to the developer of the condo or an agent for the developer. For more established condo buildings, a condo aociation or management company submits the condo approval package.

Owner occupancy

FHA guidelines for condos specify that a certain percentage of the units be “owner occupied.” For that calculation, FHA considers vacation condos or units occupied by family members as owner-occupied. In fact, a condo is owner-occupied unle it is:

One Response

Leave a Reply