Financing a Condo with an FHA Loan
August 6th, 2009There are continued signs the housing market is starting to thaw. Condo sales are helping to heat things up, but thousands of prospective homeowners still fail to realize there are huge savings to be had thanks to the federal government.
Buyers can take advantage of an FHA mortgage to buy a condominium. The FHA has helped millions of people achieve their dream of home ownership in the last 70 years, providing financial flexibility and access to great rates.
But the FHA has a specific program for condo buyers. It’s almost a best-kept secret. Buyers can obtain 30-year loans on qualified units, many of which meet the FHA’s requirements. To determine whether a condo meets the agency’s approval, visit their database at https://entp.hud.gov/idapp/html/condo1.cfm.
There are thousands of applicable condominium complexes across the country, including more than 1,200 in Texas alone. The FHA has other criteria and restrictions concerning the types of building and structures allowed, as well as financial restrictions. It’s best to check directly with the agency or an approved lender.
Thousands of homeowners have reaped the benefits of FHA loans in the last few decades. Chief among them are great rates and savings opportunities. FHA loans require only a 3.5 percent down payment. First-time buyers can even put the government’s new $8,000 tax credit toward covering those up-front costs.
To find out how much you might qualify for, try this FHA Loan Calculator and visit HUD’s list of FHA-approved condos.