FHA loans

A project needs to meet FHA requirements, for the same reasons neighborhood is a factor for regular houses. E.g., a condo unit in a project with bad finances is like a house in a flood plain.

FHA doesn't cover co-ops.

FHA covers 1-4 family housing.

almost every project in wburg is fha approved

tommy - the condo must be FHA approved if you want to do an FHA loan. FHA doesnt allow coops. You can go with an FHA loan for a multi-family home. However, for 3 or 4 family homes, it must pass the self sufficiency test. This means that 75% of the total rental income (including the unit you will be occupying) has to cover your mortgage, taxes, and insurance. Regardless of whether you qualify for the mortgage, this self sufficiency test must be passed. sunny.hong@bankofamerica.com

is the self sufficiency test new ? how would something like have been tackled at The Edge ?

Marco, the self sufficiency test is for 3 and 4 family homes. The Edge is considered a 1 family (condo) so it isn't applicable.

What is the current mortgae insurance for an FHA?

The upfront FHA mortgage insurance is 1% of the loan amount. The monthly MI is 1.1% of the loan if the loan to value is 95% or less (divided by 12 months) or 1.15% for loan to values of higher than 95%. sunny.hong@bankofamerica.com

btw...it looks like FHA is increasing the upfront MI by .75% in April.