yellow pages news jobs events calendar movie times RSS News Feeds
Rocklin and Roseville Today Good Morning!
   |   Current Temp: 65.0 F (18.3 C)

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.

Print

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

Lincoln Man Serving Aboard the Navy's USS SomersetPetty Officer 1st Class Brian West, an aviation boatswain's mate from Lincoln, Calif. and 2003 graduate of Lincoln High School, is serving in the U.S. Navy aboard USS Somerset

California Would Create More Jobs Without Prop 30In his recent piece for The Sacramento Bee, "State's job growth defies predictions after tax increases," David Cay Johnston argues that California's recent job creation numbers prove

Sacramento County Opposes Bay Delta Conservation PlanThis week the Sacramento County Board of Supervisors formally submitted comments challenging the findings of the Bay Delta Conservation Plan (BDCP) state environmental

Roseville to Host Senior Softball Western National ChampionshipsRoseville will play host this August to the Senior Softball Western National Championships

Roseville Crime Report Digest Update (7.29.14)Roseville, CA - The Roseville Police Department weekly crime report digest update for July 29, 2014.

Different Standards From Mortgage LendersJulie Jalone of MagnumOne Realty in Roseville, reports on a recent Fannie Mae survey which indicates there may be a growing difference in credit standards between small and large lenders. Which do you think has the tighter credit standards? Check out Julie's article and find out.

PCWA Comments on Bay Delta Conservation PlanDrought Watch: PCWA expresses concern about future water supply reliability for Placer County and claims EIR fails to consider key issues.

Honor Bowl Games at Del Oro August 2014ROCKLIN, CA. - William Jessup University announced today that it will serve as a sponsor for the Northern and Southern California 2014 Honor Bowl football games.

Tahoe Bike Classic Sept. 27 & 28The inaugural Tahoe Bike Classic will take over the Lake Tahoe basin this fall, September 27 & 28, 2014.

Lake Tahoe Marathon Returns September 14thArguably the most beautiful marathon in the world, the Lake Tahoe Marathon returns to Lake Tahoe on Sunday September 14, 2014. Since its inception in 1995, the Lake Tahoe Marathon has evolved into a premier running event

3 Month Old Dies in Sacramento, Parents JailedAshleigh Smith and the 19-year-old father, Terry Scott, were interviewed, they were both booked that night into the Sacramento County Jail on felony child abuse/neglect charges.

Dropping Gas Prices Lift Summer DriversLocal gas prices continue to drop and bring relief to drivers across California and the nation.


more news