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







NEWS: In Case You Missed It


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

Seniors First's Cafés Nourish Bodies and SpiritsDuring a rainy winter, when inclement weather can preclude a trip to the store or local food closet, it's important to remind the elderly and their families that there are local options available

Business Executive Fighting Lou Gehrig's DiseaseAbout five years ago, Todd Neva, now of Hancock, Michigan, began having trouble lifting his daughter from her carseat. Over time,

$226,278 Raised in Dutch Bros. Buck for Kids DayOn Friday, Dec. 5, Dutch Bros. Coffee and customers banded together to raise $226,278 for children on the company's annual Buck for Kids Day.

Roseville 5th Graders Provide Inspiration to PatientsEach month, fifth-grade students from Stoneridge Elementary School's Leadership Club visit Sutter Rehabilitation Institute (SRI) in Roseville to visit patients.

Rocklin Unified's Beleaguered Special Ed Program Seeks ChangeThe Rocklin Unified School District has contracted with WestED to perform a study on its beleaguered Special Education department.

Roseville Charity Hearts that Care Partners with Placer SIUOn December 17th, 2014, The Placer County Special Investigation Unit (SIU), a Placer County Law Enforcement Task Force comprised of State and local Placer County law enforcement

Roseville Crime Report Digest Update (12.19.14)Crime report digest update for Roseville California, December 19, 2014

Food for 400,000 Meals Raised for Placer Food BankThunder Valley Casino Resort and Whitney Oaks Golf Club have collected over 50,000 pounds of food for Placer Food Bank food drive.

Rocklin Man Victim of Elder Abuse and ID TheftLaura Kirkwood, 23 years old of Sacramento, was arrested and booked at the Placer County Jail on suspicion of elder abuse and ID theft of a 74 year old Rocklin man.

Shocking Find in Colfax Storage Unit: Human RemainsA woman called the Placer County Sheriff's Office to report a foul odor coming from an abandoned storage unit that she had just purchased through an auction

Napa Valley's New Year's Eve Bash in CalistogaCome celebrate the New Year with the return of Celebrate! Napa Valley's New Year's Eve Bash on Dec. 31, 2014 at 10 p.m. in Calistoga, Calif.

Murders by Guns Continue Declining, Suicides On RiseWhile the overall death rate from firearm violence has remained unchanged for more than a decade, the patterns for suicide and homicide have changed dramatically


NEWS: In Case You Missed It


Yellow Pages - Featured

Auto

Business

Health and Fitness

Home Improvement and Services