Buying a CONDO using FHA Financing
How do you check if a Condo Project is FHA Approved?
You can visit HUD.GOV website and search for FHA approved condos in your county: https://entp.hud.gov/idapp/html/condlook.cfm
How does FHA define a condo?
The FHA specifically defines a condo project and condo unit as follows: Condominium Project: A project in which “one-family Dwelling Units are attached, semi- detached, detached, or Manufactured Home units”.
What is a spot approval for FHA?
The FHA Single Unit Approval program, formerly known as Spot Approval, allows an FHA mortgage to fund in an association, without the project having to obtain FHA certification.
Why do HOAs not want FHA loans?
FHA requires HOAs overseeing condo communities, for instance, to limit the number of units that can be rented out. The effort needed to be certified for FHA mortgages, in other words, might be too great for some HOAs and their homeowner-members.
Why do sellers not want FHA?
Because FHA loans help low- to moderate-income borrowers with less-than-stellar credit become homeowners, sellers may feel that FHA buyers are less likely to be approved for a loan than conventional borrowers.
Why do sellers not want FHA?
Because FHA loans help low- to moderate-income borrowers with less-than-stellar credit become homeowners, sellers may feel that FHA buyers are less likely to be approved for a loan than conventional borrowers.
Why are FHA offers harder to get accepted?
FHA financing is not trusted because real estate agents do not understand how they work. Many real estate agents think that a FHA appraisal, which is a little more thorough than a conventional appraisal, is going to jeopardize their clients sales price or identify repairs that need to be done before the sale.
How can you tell if a condo is undervalued?
Here are 3 simple steps:
- Find a resale condo with a number of new launches around it.
- Look at the price gap between the new launch and resale.
- If it’s a big enough gap (for that district), then it’s worth taking a closer look.
What is the downside of buying a condo?
Condos can be difficult to resell because of the narrow pool of buyers interested in these properties. Families with multiple kids often want yards and some people may be turned off by the idea of living by someone else’s rules. The costs associated with condo living also make the buyer pool smaller.
What adds the most value to a condo?
Boost Your Condo’s Value Without Shrinking Your Wallet
- Purchase new appliances
- Re-paint the rooms and re-do floors
- Touch up the bathrooms
- Finish the basement
- Upgrade the kitchen
- We recommend looking at your kitchen before making any improvements elsewhere in the home
