Articles Tagged With: FHA Condo Loan

January 3, 2011

What Is Different About an FHA Condo Loan?

Those who buy suburban homes with an FHA mortgage have a set of requirements and responsibilities; some neighborhoods have homeowner's associations with bylaws and clauses that must be agreed upon. Others don't, but find they have their own community standards and informal covenants to live up to. When it comes to FHA condo loans, the buyer shouldn't expect to have the same experience as when purchasing a suburban home. Condo purchases carry unique responsibilities the buyer should consider before agreeing to purchase.

January 3, 2011

FHA Loans for Condominiums

By Joe Wallace

FHA home loans aren't just for traditional suburban homes; there are a wide range of choices for buyers interested in something outside a typical neighborhood. One of those options is an FHA condominium loan. The FHA guarantees home loans for proposed and under construction condo projects as well as existing condo units. The FHA can also approve mortgages for conversion projects where a property is renovated and converted into a condominium. FHA loan applicants seeking a condo loan have a few restrictions those searching for more traditional homes don't have to worry about.

December 23, 2010

FHA Mortgages: 30-Year Loans & 15-Year Loans

By Joe Wallace

No two FHA mortgages are the same. House hunters have a variety of terms, interest rates, closing costs and other considerations to think about when applying for an FHA mortgage loan on a particular property; one of the most important decisions is the length of the loan itself. FHA home loans for typical residential neighborhood homes come in 15-year and 30-year terms. There are a variety of compelling reasons to choose both--there is no strong argument for or against either term. It all comes down to what the individual buyer needs and wants from their mortgage. The buyer's perspective determines a great deal when it comes to deciding which to choose. A 30-year loan has buyer paying off more interest than principal in the early days of the FHA mortgage.

December 22, 2010

How Much Does an FHA Appraisal Cost?

By Joe Wallace

Part of the FHA home loan process is establishing the reasonable value of the home for sale. The reasonable value is not necessarily the asking price, but rather the estimated market value of the property based on the work of a licensed, FHA-approved appraiser. The appraisal is a crucial part of the FHA loan process; without it, the loan can't move forward. The FHA will not insure or guaranty a loan amount for more than the reasonable market value of the property (with approved extra costs such as energy-efficient upgrades and other items approved by the FHA to be included in the FHA loan amount).

December 15, 2010

What Is the FHA Up Front Mortgage Premium?

By Joe Wallace

FHA borrowers who decide to refinance their home using the FHA Streamline program must make another UFMIP payment, but the good news is that any money in the original Up Front Mortgage Insurance account may be transferred to the new account. Some buyers who purchased homes with an FHA home loan after September 1, 1983 may be entitled to a refund or partial refund of FHA mortgage insurance money, See the FHA for more information.

December 2, 2010

Can I Get an FHA Home Loan for a Condo Unit?

By Joe Wallace

There are many types of FHA home loans. Depending on your needs, you may find a traditional FHA mortgage is the best choice, but there are energy efficient mortgages, FHA 203(k) loans, FHA loans for manufactured homes and many others. For those searching for an FHA loan for a condominium unit, the process is a bit more complex than for a suburban home but FHA condo loans are definitely a possibility. The FHA requires condominium projects to be FHA approved before they will be processed for loans on individual condo units.