November 14, 2018

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Articles in Category: Condominium Mortgage

FHA Home Loans: Should I Buy A House Or A Condo?

FHA Home Loans: Should I Buy A House Or A Condo?

One of the big choices facing some FHA home loan applicants is whether to concentrate on buying a suburban-type home or a condo unit. FHA home loans for condo unit purchases are definitely available from participating lenders willing to offer them; what are the differences between an FHA home loan for a condo or other types of properties? FHA Condo Loan Rules: The FHA Approved Condo Projects List FHA loan rules in HUD 4000.1 require all condo units secured by an FHA mortgage to be on or added to an FHA approved condo project list. Your lender can help work with you on a condo project to get it added to the list, assuming the project meets FHA loan requirements. If you want to search for an already-approved condo project | more...

 
FHA Home Loans With Less Than Two Years Of Employment

Understanding Your FHA Home Loan Options

Understanding your FHA home loan options means knowing the different choices available to you for a mortgage. Did you know that FHA home loans are available for mobile homes, condos, and manufactured housing? FHA Home Loan Options: What Kind Of Home Do You Need? Some mistakenly assume that FHA mortgages and refinance loans are need-based and restricted to a certain income range. This is not true; anyone who financially qualifies with FICO scores, good loan repayment history, and other factors is eligible to buy using an FHA mortgage. The kind of homes you can buy with an FHA mortgage include condo units (in FHA-approved condo projects), mobile homes, modular and manufactured homes, multi-unit properties (up to four units), and you also have the option of having a home built for | more...

 
FHA Refinance Loan Credit Questions And Answers

FHA Home Loans For Houses, Condos, And Townhouses Part Two

In our last blog post we began examining FHA loan rules and how they differ whether you are buying a suburban house, a condo unit or townhouse, etc. When you buy a typical suburban home, the credit check/appraisal/downpayment issues are the same as for condo units and townhouses. But when you buy a home such as a condo or townhouse, you’re required to pay more attention to common areas and agree to your share of the maintenance/upkeep of the property in general. FHA loan rules recognize these issues and addresses some (not all) of them in the FHA loan handbook to avoid confusion about what the borrower is required to do and cases where FHA loans are not allowed because of restrictions on the borrower’s ability to sell the home. | more...

 
Five Things You Should Know About FHA Refinance Loans

What You Need To Know About Identity Of Interest Transactions

What do you need to know about FHA loan down payment rules and identity of interest transactions? We’ve been covering this topic more recently due to some reader questions about how it all works; we’ve noticed some confusion about the rules in this area and who those rules apply to. FHA identity of interest transaction rules are specifically for borrowers who have a family or business relationship with the seller. In such cases, the general rule is that a 15% down payment is required. The confusion comes in over who this applies to. FHA Loan Rules For Down Payments When The Seller Is A Family Member Or Business Associate Because identity of interest transactions require a higher down payment, naturally borrowers want to know if there are exceptions and how | more...

 
FHA Loan Approval And Your Credit Scores

FHA Loan Options For Buying A Home

FHA loan options for buying a home include choices on the housing type you need, the type of home loan you need, and sometimes even the circumstances of the purchase, in the case of people who are buying homes in federally declared disaster areas. Do you know what your new purchase FHA home loan options are? FHA Loans Available For Many Types Of Homes FHA home loans can be used to purchase property that will be owner-occupied residences, but the home can have as many as four living units. That means the borrower has the option to rent out unused living units if she chooses. Owner occupancy is a condition of loan approval, so you can’t use an FHA loan to purchase an investment property (one you intend to rent | more...

 
Mistakes To Avoid When Buying A Home With Your FHA Loan

Can I Buy A Condo Unit With An FHA Home Loan?

Can I buy a condo unit with an FHA home loan? It’s a common question, and the short answer is yes. But the FHA condo loan rules are a bit different than the rules for purchasing other types of property, so you should know what those differences are before exploring your options. FHA Condo Definition The FHA handbook, HUD 4000.1, has a specific definition of a “condo” that applies to all FHA condo loan transactions for single family home loans. According to page 150, “A Condominium Unit is a Property contained in a multi-unit project that has individually-owned Dwelling units, which may be either attached in one or more Structures or detached from each other, and is primarily residential in use”. FHA Condo Loans For Approved Condo Projects All condo | more...

 
Why Isn't The Mortgage Loan Interest Rate I See On The Internet The Same Offered To Me?

Can I Buy A Condo Unit With An FHA Mortgage?

Can I buy a condo unit with an FHA mortgage? Some people have a misconception about FHA mortgages, thinking they are intended for a certain income bracket, a certain type of home, or that it is possible to earn “too much income” to qualify for an FHA loan. None of those things are true. You cannot earn too much money to qualify, and you can explore options to buy a variety of property types up to and including condominium units. Yes, FHA condo loans are possible, but they have some unique requirements (see the section on the FHA “condo project approval” list) and certain property types may be listed as condos even if they are “detached dwellings”. The requirements for these units, sometimes known as “site condos” vary slightly from | more...

 

FHA Loan Rules: Borrowers, Co-Borrowers, Co-Signers

Do you know what the FHA loan rules are for borrowers, co-borrowers, and/or co-signers? What are the requirements for each and how is your lender required to proceed with each? The FHA home loan rule book for single family mortgages, reverse mortgages, and refinance loans is HUD 4000.1 It instructs the lender that borrowers have an occupancy requirement-the borrower must agree to take ownership of the home and use it as her or his primary residence after loan closing. Usually the borrower will have to move in within 60 days of closing. HUD 4000.1 also tells the lender that borrowers may only purchase homes with FHA loans withing the United States or its’ territories. Purchase of non-U.S. real estate is not permitted with an FHA mortgage. All parties to be | more...

 

FHA Condo Loans: Owner/Occupancy Requirements

FHA loans include the option to fill out a loan application for condo loans. Borrowers can apply to purchase a condo unit as long as the condo project is either on the FHA approved list or is added to that list. Recently we reported on the FHA’s change in rules for occupancy requirements for approval of condo projects. According to an FHA mortgagee letter, “In accordance with the passage of the Housing Opportunity Through Modernization Act of 2016 (HOTMA), the Federal Housing Administration (FHA) is required to provide guidance on the percentage of owner occupied units required to obtain condominium project approval.” To be put on the approved FHA condo loan list, the project must meet specific requirements including an owner/occupier ratio. That ratio is addressed in that mortgagee letter | more...

 

FHA Loan Options: What You Should Know

Are you thinking about purchasing a home? Or refinancing your current home loan? FHA mortgage loans and refinance loans offer a variety of options. For new purchases, an FHA mortgage loan allows qualified borrowers to purchase typical suburban homes, but also condo units, town homes, and manufactured homes. Any property that has a permanent foundation or will be affixed to a permanent foundation at closing time may be eligible for an FHA mortgage. (All homes considered for purchase with an FHA loan are subject to an appraisal and must meet basic FHA standards.) Heading 2 For new purchase loans, borrowers can choose a fixed interest rate mortgage or an adjustable rate loan. Borrowers who choose adjustable rate mortgages will be offered an introductory rate, and overall your FICO scores and | more...