What Does It Mean For A Condo Community To Be FHA Approved?
In todays Orange County real estate market, many home buyers, who are interested in getting an FHA loan, are encountering stipulations from their FHA lenders, that the condos they invest in must be FHA approved, but the average condo buyer in Orange County doesn’t know what that means; thankfully, understanding FHA approval is a lot easier than it seems.
The first thing that FHA lenders want to know is the percentage of people who live in a condominium complex are the actual owners, versus tenants. FHA lenders want to see an occupancy rate of 51%, or more than half of the people who live in the complex must be the owners of those units, versus just tenants.
FHA lenders want to see before approving an FHA loan is that there aren’t more than 15% of owners in a condo complex who are delinquent with their FHA dues. If more than 15% of owners are delinquent with their FHA dues, the lender will not approve FHA financing.
Last of all, FHA lenders want to see that there isn’t any active litigation or lawsuits among homeowners who live in the condo complex, if there are any active lawsuits, the FHA lender will not approve FHA financing.
One Of The Best Financing Options
Getting FHA approved is typically a quick process if the potential homeowner has found the right condo, they can be approved for an FHA loan in as little as 24 hours. FHA loans have become more popular over recent years since the average prospective homeowner is required to only put down about a five percent down payment and they can get approved even if they have problems with their credit.
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To learn more about FHA financing, contact the team at Fred Sed & Associates today at (949) 272-0125 or email us at firstname.lastname@example.org.
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