Yellow Pages |   News Updates |   Events Calendar |   Movie Times | Recycling  |   Document Shredding
Rocklin & Roseville Today Events
Celebrating 14 Years Online
HOME

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.



About Realtor Julie Jalone


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

Holiday in the Hills on the Placer Wine Trail in DecemberRoseville, CA, - Come join us and help celebrate the holidays on the Placer Wine Trail to benefit Toys for Tots. Enjoy the holidays in Placer County

How the Grinch Stole Christmas Comes to Life at This EventSacramento, Calif. - Dr. Seuss' beloved holiday tale "How the Grinch Stole Christmas" will come to life at Fairytale Town's annual Winter Wonderland event.

California Bowl in Roseville November 24- 26Roseville, CA - Nov. 16, 2017 -One of the most competitive and exciting youth football tournaments on the west coast returns to Roseville over Thanksgiving weekend.

Kids with Disabilities to Get Help with Telemedicine Program (Sacramento, Calif.) - The UC Davis Department of Pediatrics has received a $2 million, five-year grant from the Agency for Healthcare Research and Quality (AHRQ) to fund a new telemedicine program

Gun Scare in Roseville at Woodcreek HighRoseville, CA, - Roseville Police find loaded handgun following alert from Woodcreek High Students.

Ford can 'Focus' on its futureRoseville, CA,- Not many people are probably aware, but the Ford Focus has been among the top-selling cars in the world, and even held the top spot in 2013.

$1.5 Million in Grants for Sacramento-area NonprofitsRoseville, CA,- Kaiser Permanente has awarded 52 grants totaling more than $1.5 million to local not-for-profit organizations, schools and public entities in Sacramento, Yolo and Placer counties.

Roseville Gas Prices Up 20 Percent Year from Last YearRoseville, CA,- Gas prices in Roseville ticked up slightly this past week. Following on the heels on California's $5 billion a year gas tax hike

Holiday Safety Tips by Roseville Police Dept.Roseville, CA,- The holiday season is a busy and festive time. While you're busy preparing, criminals are stepping up their efforts to increase their holiday haul.

Fishing Club Monthly Breakfast in AuburnThe Rooster Tails Fishing Club monthly breakfast will be held at the Auburn Elks Lodge at 195 Pine Street in Auburn on November 17

Placer County Regional Bikeway Plan UpdateAs Placer County experiences dramatic growth in population, new homes and businesses, the popularity of cycling grows at the same time

Orange is New Pink 5K Walk for Breast CancerOrange is the New Pink 5K Walk for Breast Cancer will take place Sunday, Dec. 3 at Mandarin Hill Orchards in Penryn


NEWS: In Case You Missed It