Comments on: FHA Primer

By: Ruby Condos - Eastlake | The Seattle Condo Blog

Ruby Condos - Eastlake | The Seattle Condo Blog — Sat, 31 Jan 2009 20:55:55 +0000

[...] hand, the association will be well-funded, managed and maintained. The development has obtained FHA approval which will allow buyers to purchase homes with as little as 3.5% [...]

By: Newly constructed FHA approved condos | The Seattle Condo Blog

Newly constructed FHA approved condos | The Seattle Condo Blog — Tue, 13 Jan 2009 02:03:51 +0000

[...] condo developments have obtained FHA approval. With FHA approval, buyers can more easily obtain FHA financing for their purchase. Compared to conventional loans, FHA provides low down payment requirements, [...]

By: Ditech Home Loans

Ditech Home Loans — Tue, 16 Dec 2008 17:29:05 +0000

For FHA spot loans, here’s a list of some guidelines:

The homeowners association cannot have a right of first refusal restriction on sales.

Condominiums must provide undivided ownership of common areas by unit owners.

The condominium project cannot be subject to additional phasing or annexation.

No special assessments or legal action can be pending against the association.

Common areas must be under the condo association’s control for at least one year.

At least 90 percent of the total units in the condo project have to be sold.

At least 51 percent of the total units in the project must be owner-occupied.

No adverse environmental factors affecting the project or units are allowed.

No single entity can own more than 10 percent of the total units in the condo project.

The units must be owned in fee simple or held under a lease hold acceptable to FHA.

For projects over 30 units, no more than 10 percent of the units can have FHA loans, and for projects of 30 units or less, no more than 20 percent of the units can have FHA loans.

By: Tammy Winner

Tammy Winner — Fri, 07 Nov 2008 16:50:40 +0000

A Hoving, we’re having similar experiences here in Myrtle Beach. It’s killing first time home buyers and the neighborhoods they love to live in. Something has got to give.

By: Dylan Darling

Dylan Darling — Thu, 06 Nov 2008 16:56:40 +0000

What a difference a year makes. FHA is now the dominant lender in most areas. Before this year I rarely did an FHA purchase, but this year most of my buyers have used FHA or VA loans. Hopefully FHA will again allow down payment assistance programs again sometime soon.

By: Ben Kakimoto

Ben Kakimoto — Mon, 03 Nov 2008 02:38:26 +0000

Anne – I’ve heard that it is much tougher to get a project approved and the have been very few approval lately. Though, a number of conversions (given how long they’ve now been on the market) have gotten HUD/FHA approved, though that was before the bailout.

By: A Hoving

A Hoving — Mon, 03 Nov 2008 00:26:28 +0000

Ben – thank you for opening a dialogue on this. I have heard that recently FHA on the West Coast has effectively stopped approving projects. That is – approvals have come to grinding halt while the files are being over conditioned. The guidelines that used to go by the wayside are now being nit picked and communities that would have been approved 9 months ago are stalled out in approvals today. This has put the pinch on 1st time buyers interested in these communities and the lenders trying to help them. Have you heard anything on this?

By: Ben Kakimoto

Ben Kakimoto — Fri, 31 Oct 2008 21:51:55 +0000

pablocjr – Should you keep your loan with FHA then you’ll be paying the MIP for the life of the loan. You many want to consider refinancing when the LTV reaches 80%. Depending on loans/rates available it could be beneficial to refinance and eliminate the MIP.

By: pablocjr

pablocjr — Fri, 31 Oct 2008 21:02:07 +0000

In regards to the annual MIP – this is the first time I’ve heard that it cannot be canceled after 5 years for condos. Does this mean I am doomed to pay mortgage insurance on my condo for 30 years? Thanks for your help…great post.

By: Nan Butler

Nan Butler — Sat, 25 Oct 2008 23:54:58 +0000

While I can see that this is good for buyers and for those selling their condos, I’m wondering if there is a downside to the condominium association itself. With a small condominium building (nine units that have sold and resold over the years to people who either paid cash or had conventional loans with large down payments), does anyone anticipate increased potential for financial hardship on the association with a larger number of first-time buyers with low down payments and possibly more checkered financial pasts?