Can One Purchase A Baton Rouge Condominium With FHA Financing?
Purchasing a condo can be a huge task in itself to take on, but buying one attempting to use FHA financing can become an unwarranted headache. Follow the advice below to instill in yourself the necessary information for navigating through the somewhat confusing waters of acquiring financing for your condo purchase, and for understanding the process as you sail through it.
In today's economy, it becomes difficult to find the best financing for purchasing a condo, but applying for FHA financing could be the one thing that helps to save you. The US government has changed many rulings and laws that previously tied the financing up and made it much more difficult to acquire, however with new rulings that back the FHA, the loan limits have raised significantly as well as the types of different homes allowed to be purchased using this type of loan.
Prior to purchasing your condominium, and to applying for the FHA loan, you need to be certain that the condo association that owns the land your condo is on, is FHA approved. As long as there is full approval, you will be able to successfully apply for a loan. If however, the condo association is not FHA approved, the proof will be required to show at least 80% occupancy in the group of condos. This could create a snag in your plans, and cause a slight time freeze, but working carefully with your realtor should help to solve any problems that may arise.
It is important for the home-owner to realize that within Baton Rouge, when your purchase a condominium, the home-owner does not own the land under the condo. It is most usually owned by the developer or by the condo association. This is important in regards to acquiring the FHA financing, as explained in the above paragraph.
Applying for FHA financing has grown much simpler in the past few years due in part to the changes that have been applied, and also to the expansion of the range of applications accepted. No longer is bad credit a demise when it comes to financing, and with FHA and their insurance policy guaranteeing payoff of the loan, should the borrower default, there are more people applying. The rules still stand in effect, though, concerning the land under condos and whether or not the condo section is occupied.
A diligent realtor will have no problem navigating the paperwork or handling the issues at hand if you are attempting to purchase a condo in the Baton Rouge area. Simply allow them to do their job, but if they are hesitant about pursuing the course for FHA loans, point out that the changes have occurred to assist first time buyers and those with bad credit, in their quest for acquiring a home.
Keep all of your financial information together when applying for your loan, and try to keep in close contact with your realtor or the condo association you are planning on purchasing the condo from. This will enable you to stay aware of any situations as they arise, and give you a chance to handle them before they become a problem. Find the perfect condominium, apply for FHA financing, and live your dream.
Bill Cobb, CREA, is Greater Baton Rouge's favorite and most reputable home appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A home appraiser with 16 years experience, Bill Cobb brings a wealth of knowledge to the table as a home appraiser.
Bill's company, Accurate Valuations Home Appraisal Group, serves Greater Baton Rouge (East Baotn Rouge Parish, West Baton Rouge Parish, Western Livingston Parish and Northern Ascension Parish).
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