Yellow Pages |   News Updates |   Local Jobs |   Events Calendar |   Movie Times | Recycling
Rocklin & Roseville Today Local Events

FHA Loans: No to Condos



It was not many years ago when a client using an FHA loan to buy a home was rare.  Over the past few years, the FHA has been the go-to mortgage option for low to moderate income buyers. 

For young first time buyers and buyers who don't have significant cash for a down payment the FHA has been a great option.  Among the three major federal lending intermediaries including Fannie Mae and Freddie Mac, the FHA is the most flexible on credit issues. It is also lenient on debt ratios and allows down payments as small as 3.5 percent.

The issue with Condos is not the buyer's ability to qualify for an FHA loan, it's that thousands of condo developments are ineligible for FHA lending and the number of prohibited projects is growing.  As a result of federal policy changes and decisions by condo associations, thousands of complexes have become prohibited for the FHA.

Since the FHA tightened the rules for condo the number of developments approved for financing has dropped by more than half.  The number of approved developments is now just over 10,000 while the total number of condo developments is approximately 144,000.  There are very few approved condo complexes in the Sacramento area and is becoming a problem for owners as well as buyers.

The FHA will insure mortgages only on units in condo developments which have passed a certification process that examines budgets, reserves, insurance coverage, percentage of renters, and condo fee delinquencies.  According to the FHA this certification process reduces taxpayer exposure to future losses by eliminating poorly managed and fiscally week developments.  Condo associations complain the evaluation criteria are overly strict and the process of certification is too expensive.

Various state associations of Realtors are now working directly with condo boards and asking them to re-think their decisions not to pursue FHA certifications and to do this for their owners benefit.  The program stresses keeping the condo values at their highest, increasing the pool of potential buyers and helping owner use their equity.  

FHA certification may be complicated and cost associations money but could be well worth it for current residents and future buyers.

If you have any questions about buying or selling a condo or using FHA loans please feel free to contact me at the MagnumOne Realty office in Roseville (916-899-6571) or send an email to JulieJ@Jalone.com.





Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.

Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento

Placer County News Headlines

Subaru BRZ: Reasonably priced old-school sports carRoseville, CA - For driving enthusiasts who want to own a light, agile car that provides an elusive fun factor while also looking cool, the smartly designed Subaru BRZ deserves a good look.

Roseville Gas Prices See DropRoseville, CA - While regional gas prices appear to have held steady, some gas station in Roseville are reporting a downward tick in prices.

Raising Awareness for Mental HealthIn the U.S., the month of May is (or was, depending on when your newspaper publishes this column) "Mental Health Awareness Month."

Roseville Flash Crime Report (5.21.16)Roseville, CA- Weekly crime report digest update summary in Roseville for the period covering May 13- 19, 2016.

Rocklin Flash Crime Report (5.21.16)Weekly flash crime report digest summary in Rocklin for the period covering May 9- 15, 2016.

Lake Tahoe Program Aims to Spark Redevelopment and Environmental ImprovementsA new Placer County program approved at this week's board of supervisors meeting is intended to spark investment in private projects

Coffee Drive Thru Boosts Granite Bay Safe and Sober Grad NightGranite Bay, Calif. - Dutch Bros Granite Bay, located at 8663 Auburn Folsom Rd., recently raised $2,800 to support Granite Bay High School's Safe and Sober Grad Night celebration

Roseville Road Construction and Improvements Slated for JuneRoseville, CA- The City of Roseville will soon begin work to improve sight distance on Roseville Road by widening and straightening

Mental Health Matters Month in Placer CountyIn Placer County, residents report an average of 3.5 poor mental health days in a 30-day period.

No Charges in Sun City Lincoln Hills AssaultLincoln, CA- The District Attorney's Office announced that no charges will be filed in connection with an assault that occurred in Sun City Lincoln Hills

Video Recap: Roseville Mass Casualty DrillROSEVILLE, Calif. -- First responders from 35 local agencies converged on Roseville to rescue the victims of a staged but horrific accident

Placer Veterans Stand Down Event in Roseville May 24-26ROSEVILLE - Placer Veterans Stand Down, a non-profit organization whose mission is to help the Veteran population, is gearing up for its annual event May 24-26 at the Placer County Fairgrounds


NEWS: In Case You Missed It