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

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

Rocklin, Roseville Yellow Pages -

Automotive | Business | Community | Education | Finance | Health | Home Improvement
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business



Placer County News Headlines

California Projects Selected to Boost Solar DeploymentThe Energy Department is awarding more than $14 million in funding for 15 new projects to help communities develop multi-year solar deployment plans to install solar electricity in homes, businesses, and communities.

New California Laws for 2015 (Part 30)New California laws for 2015 part 30 includes civil service, acupuncture, social services, disorderly conduct, pupil health, campaign finance, mattress recycling and more.

50 Days of the Dead: China Cat SunflowerJamming in Winterland 1974 with a version of their psychedelic inspired classic China Cat Sunflower

UC Davis Patient Tests Negative for EbolaState and local public health and hospital officials have confirmed that the patient transported by specialized ambulance and admitted to UC Davis

Beth Gaines Elected to Women In Government BoardAt its 21st Annual State Directors' Conference, Assemblywoman Beth Gaines (R-Roseville) was sworn into the Women In Government 2015 Board of Directors

Suspected Ebola Patient in the Hospital A patient with symptoms consistent with Ebola infection was transferred to UC Davis Medical Center Thursday morning from Mercy General Hospital in Sacramento

Placer SPCA Announces 2015 Board of DirectorsRoseville, CA - The Placer SPCA announced the election of its 2015 Officers and the installation of two new board members.

Project for Homes Overlooking Lake Tahoe WithdrawnA project that sought to build some 112 residential homes on land overlooking Lake Tahoe has been withdrawn from the review process.

Stand Up Placer Receives $10,000 Grant from Wells FargoStand Up Placer received a generous grant award of $10,000 from Wells Fargo. Stand Up Placer is a local non-profit that provides comprehensive services to domestic violence , sexual assault, and human trafficking survivors

50 Days of the Dead: Shining StarShining Star, a song by R&B group The Manhattans was among audience favorites. This version of the JGB covering Shining Star in the fall of 1991.

Life Time Athletic Roseville: Rob Chemaly Named GMHealth and fitness industry veteran Rob Chemaly has been named General Manager of Life Time Athletic Roseville.

Roseville Liquor Store Robbed by GunmanThe Roseville Police Department is asking for the public's help identifying a man who robbed a liquor store and pepper-sprayed the clerk.


NEWS: In Case You Missed It


Yellow Pages - Featured

Auto

Business

Health and Fitness

Home Improvement and Services