In Central CT, Check If That Condo Is FHA /VA Approved!
With lenders get more restrictive with their lending requirements, and FHA also requiring condo complexes to have a minimum of 51% owner occupied units, making sure that condo you might want to buy is in an FHA approved complex, before you even put in that offer is important.
A complex that is not FHA approved, requires a buyer to come up with extra money in order to go to a conventional mortgage. This is usually 20% of purchase price. Most condos are bought by first time buyers and people that want the maintenance of the outside done by someone else.
If the conplex is not FHA approved, they will need that extra down payment money, and also when it comes down to selling that unit, that money will be needed by whomever they sell it to. Do the homework up front, or it could cost a lot down the road.
With the changing times in our housing market came big changes altogether for FHA and VA loan criteria. The biggest stunner was the condo/townhouse complexes that used to be FHA or VA approved; but alas no more.
Don't wait until after you get into contract to get shocked that the condo/townhouse is no longer approved by FHA or VA. Get your homework done and check before you list that property and check before you write that contract for your buyer.
You can get lists of complexes for FHA approved condo/townhouses/homes/communities for any state at this site: FHA approved homes and communities and this site is for VA approved condos.
The owner occupancy rate of 51 % is the biggest determination for the condo being approved as well as the insurance coverage. Ask your lender if they are able to determine project eligibility, review project documentation and certify if that property is not FHA/VA approved.
Be proactive before you list a property or write a contract.
Find out more from a lender and do your homework.
Celeste "Sally" Cheeseman is a Realtor-Associate® and Certified Residential Specialist (CRS) with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocations, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents, Home Buyers and Sellers.
© 2007-2011 Celeste "Sally" Cheeseman's Hawaii Real Estate and Relocation Blog.
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