Condominiums are often the most affordable option for first-time home buyers, small families, and those in urban areas. Buyers looking to pick up a good deal with a low down payment will have more choices in a couple months. #fha #condo
Over recent years, it has not usually been practical to do an FHA backed mortgage for most condos because it would often fail. That situation appears to be changing very soon. The California Association of Realtors has just announced that FHA will make it easier to purchase condos with FHA financing beginning October 15.
NAR: New Condo Rules Will Open More Doors for Buyers
The association says changes to FHA financing qualifications will bring more entry-level homes to the market, helping to meet buyer demand. The relaxation of some rules by HUD is expected to help revive the condo market. NAR says the new condo rules, which will help more would-be buyers access affordable housing, satisfy many of the changes the association has backed for more than a decade.
To qualify, the condominium building must have at least 50% owner-occupancy, and a maximum of 35% commercial space. HUD may approve an owner-occupancy level as low as 35% for older properties with less than 10% of units in arrears.
580 credit score is all it takes to qualify for FHA financing. Buyers will likely get a better rate with a Conventional loan if their credit score is above 720. An FHA loan is more flexible to obtain, but no matter what, you will have to pay mortgage insurance. A Conventional loan requires a higher credit score and more money down, but does not have as many provisions. Los Angeles County FHA loan limit is $726,525.
On the HUD site, we only see two approved condos in all of Los Angeles County: 1015 ARCADIA AVE, ARCADIA, CA 91007 and 129 N HILLCREST BLVD, INGLEWOOD, CA 90301
On fhaloans.guide, we see many approved condos buildings:
Bunker Hill Tower 800 W 1st St – Approved via HRAP HUD Review and Appraisal Process
On the MLS, we see these recent FHA approved condo buildings:
525 N SYCAMORE AVE
8650 BELFORD AVE
8710 BELFORD AVE
436 S VIRGIL AVE
2884 SAWTELLE BL
4125 INGLEWOOD
Downtown has seen very few recent successful FHA/VA condo transactions, but that should change, and the tiny list of FHA approved condos should grow substantially after October. | VIDEO
Here is a HUD federal government website with more help to identify FHA-VA approved condominiums:
https://entp.hud.gov/idapp/html/condlook.cfm
In addition to FHA approved buildings, buyers can today find a few HUD repos and FNMA foreclosures in awesome buildings like The Mercury at 3810 Wilshire Bl.
Buyers should educate themselves a bit before choosing a lender. Regarding the condo situation over the last 20 years in Los Angeles, local real estate agents say that the truth is certain: Many lenders don’t like wasting their time with people who must use FHA. Buyers really need to use one of the lenders that goes above and beyond to help buyers. When they say they can help with FHA, buyers would be wise to ask questions to verify that the lender has successfully completed FHA loans recently.
Get a free list of FHA / VA approved condos for sale. Fill out the online form:
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Copyright © This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.