Condos, First time home buyers and FHA Approvals
January 29th, 2014 at 2:47 pm by Gary Mawson Jr.
Condos and town-homes are a great way to enter the home ownership club without breaking the bank. Most first time home buyers looking to buy a home have limited money to put down or are looking to save for a rainy day! FHA offers a great alternative to purchasing a home with a minimal down payment.
FHA is a great program allowing people to purchase a home with just 3.5% down payment. You are able to keep the majority of your money and still purchase a home. For instance, if you purchase a condo or single family house for 200K your obligation is only $7500 plus closing costs. This is an amazing program that can help many who qualify to achieve their dreams of home ownership.
So your first step should always be to consult a mortgage representative to find out how much you can afford to pay for a house. Once you have figured out this number and what your payments would be and what you are comfortable paying, it is time to start your real estate search. You don’t necessarily have to find a Realtor right away, there are plenty of sites such as www.zillow.com that can help you figure out what you can afford in the different areas that you may be interested in looking at. Once you narrow down your search to a specific town or towns, than you are ready to start looking for a Realtor. It is important that you find someone that knows your market or is an expert negotiator. Any Realtor can find you a home, but the good ones will be able to answer a lot of your real estate questions and make sure that you are comfortable in the home buying process.
FHA has some more guidelines than most other programs out there and if you are buying a condo or a town-home than you have to make sure that the community is FHA approved. FHA wants to make sure that the community fits into the criteria that they have in order to lend to you within that community. To check and see the eligibility of a condo that you are looking into check out the HUD approved condo list. This is the quick and easy way of looking into it, but the long answer is they want to make sure that there are more owner occupied units in the community and also that the majority of the people are paying the home owners association dues. There are some other ins and outs, but these are really the main two points. This is put into place to make sure the stability of the association and the community, and to protect you as a borrower.
Now that you are informed it is time to get the process started. If you have additional questions in relation to all of this feel free to message me. We are here to help!