If you came to by a condominium in San Diego using an FHA loan it's important to understand the rules and regulations when it comes to this type of mortgage. Not all condo buildings or complexes are FHA approved.
The Federal Housing Administration is a government-backed agency providing mortgage assistance to home buyers using low qualifiers that are lower than those required by independent mortgage outlets. However, condos must be approved by the agency in order to do business under their guidelines. Many condominiums are restricted as to the communities they are allowed to purchase and because of strict regulations set by the FHA.
Here's what you need to know about FHA friendly condominiums.
There are a variety of ways to find a condominium that is FHA approved. One of the best and easiest ways is to use a real estate agent that is very familiar with San Diego condominiums such as myself. Because I work with hundreds of complexes and buildings throughout the San Diego County area, I can tell you exactly which buildings or complexes are FHA approved.
In order for condominium community to get FHA approved, it must be fiscally sound, be majority owner occupied, have a low delinquency in dues and condo association fees, be well-maintained, and have reserve funds for emergencies.
If the condominium is not currently approved it can get approved by following through with some requirements. First, an FHA approved lender sends an appraiser to a property to evaluate the market price and worthiness of the complex. The appraiser considers all property sold within the market for the past few months and establishes a fair market price. If the selling price is above the appraised value, the buyer must either come up with the difference in cash or the seller can lower the price. If the property of buyer wants to purchase needs extensive repairs, the FHA will include the cost of repairs and back a loan for up to 110% of the value of the property after repairs are added to the value.
Not all condominium complexes are FHA approved so it's important to understand what you are allowed to purchase under an FHA mortgage.
If you are specifically looking for a condo throughout San Diego and you need that complex to be FHA approved contact my office today. I'd be happy to send you a complete list of properties and buildings that match your search criteria and price that are FHA approved.