A good option for first time home buyers and buyers with lower down payments is the FHA loan program. If you will use FHA for your home purchase...
Be sure you or your agent Check the FHA status of approved condo tracts before writing the offer (or check with the lender) or at this link:
Some tracts in the same development will be approved while others are not. Have your agent research the tract number if there are mixed results.
If it is not approved, the lender can apply for an approval which will take four to six weeks or longer. They require a substantial amount of reserves from the Home Owners Association for recertification. Be prepared, they will not always meet the reserve requirements. (The lender can also apply for a spot approval if the tract status was never withdrawn.)
Checking the condominium tracts will avoid wasted time and grief if it is not HUD approved.
For more information on the HUD program go to http://www.hud.gov/buying/
A question you can ask your lender can be... "What if I find a condo I want to make an offer on that is not on the approval list?" Their answer will help you determine if you should shop for another lender.
"Helping you find your path home."
Gloria Bumanglag, GRI
Realtor- Century 21 Superstars
Servicing South Orange County and Surrounding Areas