FHA and VA Loans: How to Get 5% Down on Lofts and Condos

Lofts and condos are popular living situation but financing with VA and FHA can be tricky

Why are most condos not approved for FHA or VA loans?

Many different types of FHA loans are available for borrowers who want more options than a typical suburban home. Many properties may be purchased with an FHA-insured mortgage, including manufactured homes, multi-family units and condominiums.

FHA Condo Loans Feature Unique Requirements

FHA condominium loans can be more complicated than other types of new purchase real estate loans because the FHA has requirements for liquidity, ease of sale etc. However, these factors shouldn’t discourage a borrower from exploring their low down payment condo loan options. Still, it’s essential to be aware of the rules to save time and to begin searching for a new home in the right place.

Condos have restrictive covenants, rules and other issues that the FHA usually rejects. 

For a given condo to be approved for an FHA home loan, it must be on (or added to) the FHA’s list of approved condominium projects. In addition, FHA publishes a searchable list of approved condo projects on its website. 

What criteria must a condominium project meet to be included on that approved condo project list? FHA guidelines state, “to be eligible for FHA mortgage insurance, the project must have been declared and exists in full compliance with applicable State law requirements of the jurisdiction in which the condominium project is located and with all other applicable laws and regulations.”

“FHA insures condominium single unit loans for up to 30-year terms to purchase or refinance a unit in an FHA-approved condominium project. The condominium project must be primarily residential, contain at least two dwelling units, and can be detached, semi-detached, a row house, a walk-up, mid-rise, high-rise, including those with or without an elevator, or manufactured housing.” That is a quote from the FHA/HUD official site.

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Some properties are not eligible due to the nature of the project. For example, “condo hotels” are not allowed on the FHA-approved condo project list. Also forbidden–timeshares, houseboat projects, or condos that feature more than one dwelling in a single condominium unit.

Fill out the online form to get a free list of FHA/VA and Low Down Payment Homes.

The good news is that many condo buyers can get a home loan with 5% down.

Condo projects may not be FHA approved if they contain restrictive requirements. For example, the “right of first refusal” clause in some condo owner association agreements can be problematic for FHA borrowers.

If you want an FHA condo loan, FHA encourages the use of the approved condo list as a way to start searching for a suitable building in your area. The HUD search tool lists approved condo projects by condo name, state, zip code, and other factors.

A condo project that is not currently on the approved list may be added with the help of your participating lender-speak to a loan officer about what may be required.

#5%downhomeloans

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Use the FHA guidelines to secure a loft or condo loan with 5% down

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.

Six Ways to Improve Security in DTLA Loft and Condo Buildings – Which Buildings Have 24-Hour Security?

Cozy Little Tokyo Lofts has a Layer of 24-hour Security

1. Upgrade Lighting with Motion Sensors

A great way to promote the security of your building is to ensure that the outside of your building and any parking areas are well lit. You should consider installing lights, especially near entrances of your building. When these areas are highly visible at night, it will deter crime. It will be easy to stop and catch any criminals in the act and prevent break-ins in your building. Installing lighting is an easy and cost efficient method to ensure better security in your apartment building.

420 S San Pedro St #631 Downtown Industrial Live/Work Loft Condo with High Ceilings, Balcony, Fireplace

2. Hire a Professional Risk Assessment Consultant

A security risk assessment is the best way to improve security in your building. A professional from a security company will come in and assess your property. He will identify any vulnerable areas in your security system and make suggestions for improvement. A security risk assessment is the best way to figure out the best methods for improving the security in your building.

An excellent physical security solution isn’t one-size-fits-all. Every space and building is unique, and security needs change over time. In today’s buildings, security systems need to protect the perimeter and safeguard sensitive data and information constantly in motion. So even if you’ve installed security systems in the past, they may not meet the current standards for protection.

Don’t wait until after a breach has occurred to evaluate your physical security. A site assessment with a trained security professional can help you improve the safety of your building by uncovering weak points in your current system and identifying the right technology to safeguard your space. 

3. Install or Update Your Video Surveillance System

If you do not already have security cameras in your apartment building, you should install them. A surveillance system is a great way to deter crime and provide evidence of any issues to you and the police. If you already have a video surveillance system in your building, you should consider an upgrade. If you have a security risk assessment, your assessor can suggest proper camera type, close up or wide view, placement to ensure maximum visibility. You should have enough cameras to ensure that every part of your building is visible from your cameras.

4. Hire a Security Company to Staff The Property

Security officers are a great way to promote security in your building and make your residents feel safer. You should consider having security officers by your entrances, in your lobby, or patrolling the building. Security officers can deter crime and react to any issues in your building in real-time. The Little Tokyo Lofts in DTLA has 24-hour security and residents find it reassuring and effective. Security officers will also make residents feel more secure and give them someone to call that is more direct than the police if there is an issue in the building. #loftsecurity

5. Install Door and Elevator Access Control

Access control systems are a great way to add an extra layer of security to your building. Residents can use keycards to get into the building, use the elevator, and even enter their apartment buildings. Keycards are more difficult to duplicate than keys, adding an extra layer of security. It is also easy to turn on and off access to individual keycards if a tenant moves out. Access control systems can help prevent intruders from entering your building and add an extra layer of security to your building. Office buildings and hotels use this system effectively, so it should work well in a residential setting.

6. Encourage Communication and Familiarity

One extremely efficient and cost-effective method to promote security in your apartment building is to encourage your residents to know their neighbors. You can consider holding community events that will encourage community or even simply posting signs and announcements that encourage residents to get to know one another. When your residents know each other, it will be much easier for them to spot suspicious activity and unwelcomed guests. Neighbors will be more vigilant and look out for one another. They will be more likely to notice someone who shouldn’t be there if they know the residents and will be more likely to care enough to report activity. A strong community in your apartment building will improve security and will not cost you anything extra. #codosecurity

Looking for a secure loft home in the Little Tokyo neighborhood. Fill out this online form.

Key takeaways

Taking the time to do a thorough security risk assessment is a proactive step in protecting your building and assets. 

Choosing new security technology can be a daunting investment with so many options to choose from. When comparing different solutions, remember that a one-size-fits-all approach to security can leave your building vulnerable. Instead, opt for systems that allow for customizations and seamless integrations to get the best protection possible. While this security audit checklist is a great place to start, a security system professional can do a more thorough site walk. She can recommend the best solutions to ensure your building is protected from all types of threats.

#entarispowerful

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

SEARCH LOFTS FOR SALE Affordable | PopularLuxury
Browse by   Building   |   Neighborhood   |   Size   |   Bedrooms   |   Pets   |   Parking

Get Expert Support From Professional Security Consultants

Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.