FHA Loans for Homebuyers
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FHA Refinancing
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Need to Know
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FHA Programs for Homebuyers
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FHA Condominium Loans
FHA Condominium Loans are specifically geared toward those who purchase housing units
in a condominium building. Condominium ownership, in which separate owners of individual units jointly own the
development's common areas and facilities, is for some a very popular alternative to home ownership.
Insurance for this type of housing is provided through FHA Section 234(c).
This FHA insurance is very important for low and moderate-income renters who wish to avoid the risk of
being displaced when their apartments are converted into condominiums.
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Now is the time for an
FHA HOME LOAN
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FHA Loans Help Lenders Rest Assured
Of the many types of mortgage insurance programs offered by FHAMortgage.com, FHA Condominium Loans are designed to
encourage lenders to extend affordable mortgage credit to those who have non-conventional forms of ownership.
The FHA Condominium Loan program insures a loan for 30 years to purchase a unit in a condominium building.
The building must contain at least four dwelling units and can be comprised of detached and semidetached units,
row houses, walkups, or an elevator structure.
Through this and other types of mortgage insurance programs, FHAMortgage.com helps low and moderate-income families
purchase homes with FHA loans by keeping the initial costs down. By serving as an umbrella under which
lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA
loan insurance allows individuals to qualify who may have been previously denied for a home loan by
conventional underwriting guidelines.
FHA Condo Loan Availability
Many of the features of Section 234(c) mortgage insurance are similar to those of FHA Section 203(b) for one
to four-family homes. Down payment requirements are low because these FHA loans allow borrowers to finance up to
97 percent of their home loan and some of the closing costs can also be financed, further reducing up
front costs. On a Section 234(c) loan, FHA sets limits on the size of the loan which vary with location
and the number of units being purchased.
FHA Condo Loan Assistance
FHA Section 234c insures a loan for as many as 30 years to purchase a unit in a condominium building,
which must contain at least four dwelling units and can be detached or semidetached, a row-house,
a walk-up, or an elevator structure. Most of the features of Section 234(c) mortgage insurance are the
same as those governing HUD's basic FHA mortgage insurance program, Mortgage Insurance for One- to Four-Family
Homes (Section 203(b)). For example, down payment requirements can be low --3 percent or less-- because FHA
insurance allows homebuyers to finance about 97 percent of the home's cost through their mortgage.
In addition, some closing costs can be financed, reducing up-front costs. And FHA limits some fees that
lenders charge-for example, the loan origination charge. Finally, FHA sets limits on the size of the
mortgage loan that vary with location and the number of units being purchased.
Special FHA Condo Loan Restrictions
If the apartment is in a building that was converted from rental housing, insurance may not
be provided under Section 234(c) unless:
- Conversion occurred more than one year prior to the application for insurance.
- Buyer or co-buyer was a tenant of that rental housing.
- Conversion of the property is sponsored by a tenant's organization that represents a majority of the households in the project.
FHA Condo Loan Eligibility
Any creditworthy persons who meet FHA underwriting criteria and are intending to occupy the condominium unit
as their principal residence are eligible to apply. Eighty percent of FHA mortgages in the project must be
made to owner-occupants.
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to Buying a Home with an FHA Loan
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> FHA Step 1
How much can you afford?
> FHA Step 2
FHA says, "Know your rights."
> FHA Step 3
Shop for an FHA loan.
> FHA Step 4
Shop for a place to call home.
> FHA Step 5
Make an offer for the home.
> FHA Step 6
Get a home inspection.
> FHA Step 7
Your homeowners insurance.
> FHA Step 8
Sign on the dotted line and move in.
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VA Mortgage News
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Pioneer Military Loans
Serving the military community with personal loans from $500 to $10k.
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