Jeff’s Carlsbad Blog for First Time Home Buyers


What You Should Know About FHA Loans

Posted in Financial,Mortgage info by Jeff Dowler on June 28, 2009
Tags: , , , ,

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 bduget may not qualify for this loan.

NOTE: Important update 10/17/09  – SPOT APPROVALS are no longer allowed by FHA with some new regulations that went into effect Oct. 1.  Check with your lender to see how this affects you.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: