When it comes to FHA loans, the guidelines are similar yet different when compared to conventional loans. One main difference comes when condo purchasing is brought into the equation.
When you’re buying a condo with FHA financing, you’ll want to be aware of the FHA’s differing stances between new buildings; buildings which have been built less than one year; buildings for which control is still with the developer; and, buildings for which control has been during over to a homeowners association (HOA).
There are also special distinctions for certain buildings that have the approval of the Department of Veterans Affairs for a VA loan, so take note of that. The FHA places loan-to-value (LTV) limits on certain condo units, and you may be asked to make a down payment of up to 10 percent because of it. Before you plan to finance a condo via the FHA, be sure to know the rules.
More information regarding condo approvals can be viewed in the updated version of the FHA’s single family handbook. As for this update, what do you think? Do you feel as if this information will make the first step towards home ownership for those easier? In any case, we are here for any questions you may have, Hit the contact us button and learn more!