If you are in the market for a condo, FHA financing might be a great option for you. Most people are not aware that if you are putting down less than 25% on a condo, there is a rate adjustment that you’ll be facing. Typically it is 75 basis points (usually equates to 1/4% in rate), but depending on FICO score it can be more significant than that. FHA is a great way not only to get into a condo for 3.5% down with NO rate adjustment, but to have more flexibility for rates and closing costs, allowing you to make the right choice when it comes to your loan selection.
What happens when the condo you are looking to finance is not FHA approved? This is not a terminal problem, FHA approvals typically last for 2 years. If your prospective condo is not approved, we have experience in getting your project approved. The process entails collecting the required documents that FHA reviews and submitting those documents to the local field office for underwriting and approval. Typically, this process takes about 30 days once submitted.
If you are looking to buy a condo and you want to explore FHA approved projects, consult your loan officer to examine your options. FHA may or may not be the best choice for you, so it’s important to examine your options and ensure you’re pursuing the best loan program for you.
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