FHA Approved Condos

Anybody?

Is this what you're looking for
http://www.nyc.gov/html/hpd/html/buyers/lotteries.shtml

No, I think Sangara is looking for condos that fulfill FHA lending guidelines.

The mortgage guy from Countrywide explained this a while back. Mortgages can either be insured by Fannie/Freddie or FHA (aka HUD). Fannie/Freddie require higher downpayments (20%) while FHA only requires 3.5% down. Obviously you pay a higher percent on the FHA loans.

The conforming limits are different as well. However, I think that many condo offering plans in NYC are not FHA compliant, which means you can't get an FHA loan -- right Sangara?

I'd love to know more about FHA loans, I"m thinking about using one to purchase a multi-family (when prices return to normal, ok!)

Shong's post from an earlier thread:

"FHA is a government loan. They allow as little as 3.5% down. The loan limits are as follows for 2009:

1 family - $729,750
2 family - $934,500
3 family - $1,129,250
4 family - $1,403,400

There are some flexibilties compared to your conventional loan. Rates are usually relatively low and very comparable to your conventional conforming rates. They allow 96.5% financing, more lenient on credit and reserves, can have multiple borrowers, etc.
But you also must know that there is an upfront MI charge of 1.75%, which you can finance. And you pay MI whether youre putting down 5% or 50% (except of 15 year fixed mortgages which dont require MI with a 20% down payment).

FHA is more prevalent in the outer boroughs and outside the NYC market where there are single and multi family homes. Rarely will you find an FHA approved condo or coop. Mainly because FHA has very strict rules when it comes to condos and coops, for example, any language of right of first refusal will deny FHA approval."

Yes JM, I am looking for condos in Brooklyn that fulfill FHA guidelines, I have found about 4, and was wondering if anyone knows of anymore. Thanks for the input.

Hi sangara,

I ran into a seller last week showing an FHA-approved condo in FiDi. Sounds like you are not interested in Manhattan but shoot me an email at downtownyblog@gmail.com if you want the listing - I don't want to put the guy's info on a public blog.

http://downtowny.blogspot.com/

Thanks jm. sangara, there arent many FHA approved condos in Brooklyn. And you wont find many that are new developments especially. Here is the website: https://entp.hud.gov/idapp/html/condlook.cfm

Please remember, a building wont be FHA approved for financing until 51% are in contract. A few developers started the FHA approval process and some of them are advertising FHA approved but many of them arent exactly FHA approved just yet. It is contingent upon pre-sale and sometimes other factors.

FHA is a great program for 1-4 family homes especially if you have the capability of making the payments but looking for little money down. Certainly the rates are vey attractive.

Please email me with any specific questions anyone has about FHA.

sunny_hong@countrywide.com