Your FHA home loan options for buying a home in 2019 are as diverse as the kinds of homes on the housing market. Do you know what your home loan options in the new year are with an FHA mortgage?
FHA Forward Mortgage Options In 2019
The “forward mortgage” is the kind of loan you will use to buy your dream home with. Those forward mortgage loan options are not just for typical homes in a suburban neighborhood; did you know you can use an FHA mortgage to buy a condo unit, a mobile or manufactured home, or even a duplex or multi-unit property?
The FHA condo loan option requires the condo project to be approved by the FHA; your lender can discuss the procedures for adding a condo project to the FHA approved list if it is not there already.
FHA mobile home loans, while not offered by every single participating lender on the market, can help those who want to own a home but need a lower price point.
Manufactured homes and mobile homes have some unique requirements including a rule that the home be transported directly from the dealer or manufacturer to the site where the home will remain permanently.
These types of properties must be affixed to a permanent foundation as a condition of loan approval.
FHA home loans can also be used to purchase a home that would not pass the appraisal process when purchased; the FHA Rehabilitation Loan allows the borrower to purchase a fixer-upper home, but there is a catch.
These FHA loans come with the caveat that the home must be brought into compliance with FHA minimum standards plus state/local building code within a specified time frame. It’s not truly a “catch” but it is something borrowers should remember-you cannot purchase such homes with an FHA rehab loan without a specific plan and intent to repair them within a certain time frame.
FHA Mortgages Are For Real Property
Any home that passes an FHA appraisal and meets FHA and lender requirements can be suitable for purchase with an FHA mortgage, but no matter what kind of property you seek, FHA loan rules state that the home must be taxable and legally classifiable as “real property” or real estate.
That is why FHA loans can never be approved for RVs, houseboats, or any type of structure that is not to be placed on a permanent foundation.
Talk to a participating FHA lender about your home loan goals for 2019 and see what your options are-you’ll be glad you did!