Buying a Condo in the DC Area? Don’t Forget to Consider FHA Financing

Are you looking for a way to purchase a condo in DC?  Wishing that you could find a way to buy your dream condo but lack the money for a down payment? Or are you just getting started and the traditional lenders won't give you a chance to buy a condo in today's tightened lending environment.

Well, there's great news for those looking to purchase a condo in the Metro DC area!  The FHA is finally adjusting to market changes and demands and loosening some of their strict condo buying guidelines. View Changes.

These new changes are exciting, making FHA backed loans for condos a popular choice. And it's no surprise considering the current ultra strict guidelines established by conventional lenders requiring higher credit scores and bigger down payments. 

Bottom line, right now you can potentially take advantage of the distressed market by purchasing a condo with a FHA backed loan. This allows you to not only take advantage of the currently slashed condo prices in today's market but to do so with a small down payment. Coupled with the current low interest rate, FHA condo mortgages are not only popular, but also a smart move for potential buyers.

And if this is not enough to make you consider a FHA mortgage for a new condo, here's more to consider:

•  First time homebuyers are combining the attraction of current FHA backed loans with the $8,000 First Time Home Buyer Credit which was just extended until April 30, 2010!

 •  FHA credit requirements are not as high as traditional lenders which allows buyers with blemished credit the opportunity to still obtain a mortgage providing they can show they have an established (reasonable) history of paying their bills.

•  If the condo you choose already has FHA approval, you can get a mortgage in as little as two weeks. If it is not on the approved list, guidelines for spot approval have recently been loosened in favor of the buyers.

•  The FHA offers a Kiddie Condo Loan Program allowing young adults to access the market of condo buying by qualifying with a co-borrower.  This is a great way for young adults who may not have a chance otherwise to get started and establish a solid credit rating.

•  The FHA definition of a condominium may include dwelling units in detached, semidetached, rowhouses, garden-type, low- or high-rise structures. This expands the condo market for the buyer who may traditionally be thinking only of the newly constructed condominiums.

With the help of a top Realtor, such as Rachel Valentino, you may be able to find a great home option, an affordable condo in on of DCs prime neighborhoods or suburbs you previously thought of as out of reach.  Imagine living in a neighborhood with great views and with the best school systems - it may not be just a dream, but a real possibility.

Why not call Rachel Valentino today to discuss your options. She can work with you in today's condo market here in the entire DC metro area. Read Previous Article on Buying a Condo.

With reduced prices on condos, low mortgage rates, low down payment options, a FHA Condo Loan may be your ticket to living in a new condo in 2010. But these market conditions won't last for ever as the economy recovers and the First Time Home Buyer Credit is scheduled to end April 30, 2010. Be sure to start looking early and you many still be able to claim the home purchase on your tax returns for 2009. Visit Rachel's Atlantic Coast Connection website today to get started.