May 1, 2015
A reader asks, “I have a condo that was FHA approved when I bought it 10 years ago, they decide to not continue to participate any more about 5 years ago, all I was able to do was refinance at a lower rate thru streamlining with no money out. I had filed bankruptcy a little over 2 years before I bought it with a FHA loan at 5.5.”
“I got my credit score up and have a rate under 4% now by refinancing it thru streamline which the balance can be assumed by someone if they qualify but would have to find the balance else where, what I want to know is that I want to sell my condo and buy a house possibly thru FHA can I buy it as a first time home buyer where my loan now is on a condo, my FICO score is close if not over 700 would I be eligible for the 3.5 % down and have some of the closing cost financed because the house does need some updating or once approved would it be better to have the person I am buying it from go ahead and have update done and just include in selling price as it is family.”
The main issue in this reader comment/question seems to be, “I want to sell my condo and buy a house possibly thru FHA can I buy it as a first time home buyer where my loan now is on a condo”…this indicates a belief shared by many that FHA single family home loans are designed specifically for or provide an advantage specifically to the first time home buyer.
But this is not true. There is no advantage, beneft, lower rate, or preference given in the FHA loan application process to first time home buyers. The same basic program is open to all financially qualified borrowers.
That is not to say that a participating FHA lender might not have some sort of program aimed at the first time buyer, or that there are not programs for such people offered in the local area. But as far as the actual FHA home loan program itself, there’s no distinction made between a first time home buyer and someone who has purchased before.
Borrowers who need information on first time home buyer programs should explore their local area including state or city programs that might be on offer. The FHA has some limited information listed by state, but chances are good that borrowers or potential borrowers will need to do some research on their local area.
Do you have questions about FHA home loans? Ask us in the comments section. All comments are held for review.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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