Tuesday, March 10, 2009

FHA for condos

If you have been thinking about or have already purchased a condo you may know that sometimes it can be more difficult to obtain financing on a condo. Often lenders require larger down payments if a condo complex is non-conforming (usually this means that more than 20% of the condos in the complex are rentals).

Also, if you are thinking about getting an FHA loan you need to make sure that the complex is FHA approved. You can do a search at www.hud.gov to find out. Even if the condo you have your eye on isn't on the list, there is still a chance you can get an FHA loan. If the complex has more than 4 units the lender may be able to do a "spot approval" on your unit. Each lender is different and these rules are constantly changing, so please talk to your lender for more details about particular complexes you are thinking about before getting your heart set on the perfect home.

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