Tag: home loan downtown los angeles

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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.

#entarissmart

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

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

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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.

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Who should get an Adjustable Rate Mortgage?

Ready to make an offer? Better get your mortgage product lined up in advance.

Who should get an Adjustable Rate Mortgage, (ARM)?
Most home buyers and borrowers prefer a fixed rate, but there are some who would benefit from an interest rate that starts lower. There are a few instances where a lower interest rate now is financially helpful, and a higher rate later may not matter.  Here are the folks who benefit from an Adjustable Rate Mortgage:


1. Homebuyers who plan to live in a house for only a few years;
2.  Buyers who expect to refinance soon, or:
3.  Borrowers who expect their income to increase significantly in the near future
These individuals may decide that the short-term benefit of an initially low rate is all that matters. #ARMloans

Free Home Loan Reports Fill out the online form.

Communicate with your lender or broker to understand your Loan Options

Some home buyers should pay discount fees and some should not.  Here’s one way to determine if discount fees are a good idea for your home loan:
Buyers who don’t plan to be in a house for a long time probably shouldn’t pay discount points. The lower interest rate isn’t likely to be worth it. 
Buyers need to stay in a house for a long time to recover the money they paid in discount points. #discountfee

Planning to retire from work early, or do you have future plans like starting your own business? Then you may prefer to build equity quickly and pay off the mortgage as soon as possible. You may be happier with a 15-year or 20-year mortgage rather than the usual 30-year loan. The higher payments with a shorter-term loan may mean buying a less expensive house, however.

A common type of buyer is a young couple who don’t have a high income. However, they expect their income to increase and want to buy the largest, most expensive house they can afford.  These buyers might benefit from any program that would increase the loan amount they can qualify for: an adjustable-rate, a high loan-to-value ratio, a 40-year loan term, a downpayment assistance program, or secondary financing.
Some buyers don’t want to borrow as much money as lenders might allow them to borrow. 
They might want to invest more money elsewhere or might not want to get overextended in anticipation of large expenses later, like having children. 
Or they may simply wish to avoid the stress of loan payments that force them to budget.
In short, there is no one-size-fits-all lending solution for all buyers. 
Buyers need to consider how the various financing options fit their circumstances. 
The lender will take some of these factors into consideration, but ultimately it’s the buyer who must decide what type of loan best fits her financial situation.

LOFT & CONDO LISTINGS DOWNTOWN LA [MAP]

  Lofts For Sale     Map Homes For Sale Los Angeles

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

Planning ahead for your home purchase means understanding your mortgage options

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.