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



Follow Us On Facebook



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

Renewable Energy Job Training for Local StudentsRoseville - More than 25 local students from Sierra College have now gained invaluable hands-on training for jobs in the fast growing field of renewable energy

Placer SPCA waiving Adoption Fees in DecemberRoseville, CA - The Placer SPCA is thrilled to announce that every animal adoption fee will be waived from December 1st through December 31st

New California Laws 2017 - Part 1Roseville, CA - New California laws for 2017. Part 1 includes racial mascots, immigration, tobacco, marijuana, search warrants, mental health and much more.

27th Annual Holiday Craft Fair in Roseville Roseville, CA - The 27th Annual Holiday Craft Fair in Roseville takes place this Saturday at Maidu Community Center.

Roseville Flash Crime Report: Mail Theft on the RiseRoseville, CA - The Roseville Police Department's public police activity report for the period covering November 15-28, 2016.

Football Championship West in Roseville and RocklinRoseville, CA - The Football University (FBU) National Championship West region games will take place on Dec. 2-5 in Roseville and Rocklin.

Local Businesses Warned About Potential ScamThe California Department of Alcoholic Beverage Control (ABC) is warning ABC licensees and the public of a possible scam in both Northern and Southern California involving persons

18th Annual Holiday Show and Sale in RocklinRocklin, CA - The Ridley Gallery at Sierra College Rocklin Campus is proud to announce our Eighteenth Annual Holiday Show and Sale

Volunteer for Elves for the ElderlySeniors First, a Placer County non-profit organization focused on providing programs and services for our area's elderly, is continuing their holiday gift program

Children's Christmas Faire in AuburnAUBURN - Santa is high in demand this season but will be stopping by the Children's Christmas Faire for free photo opportunities for 400 local children

Free Band Concert in Rocklin at Sierra CollegeRocklin, CA - The Sierra College Music Department is proud to present the 33rd Annual Sierra College District High School Honor Band Concert

Rogue One: A Star Wars Story Tickets On SaleDisney announced that tickets for Rogue One: A Star Wars Story will be available online starting Monday, November 28th


NEWS: In Case You Missed It