I have a condo listed in an USDA area. No problem with USDA qualifications the property is 3 years old. FHA approval for the association does not matter because USDA does not look at that. 100% financing and no monthly PMI in a federally backed loan, Thats the way to go!

the current first time homebuyers tax credit has actually accelerated the purchases of many condos as they offer lower price points than many detached (or attached) single family homes. As previously stated, you would want to have a very good amount of paperwork available when you begin and would now miss the deadline for the first time homebuyers credit as it expires in just over 30 days.
Best of luck to you!

Hello Avis,

I cannot speak to the resale value of condos, for that I would cede to the licensed agents in our group.

It is not necessarily harder to get a loan for a condo, but there is more work involved and it can be pricier in terms of rate. You will need to have a condo questionnaire completed by the association, and there may be additional paperwork required as well. If you are looking at an FHA loan, you would need the association to be either FHA approved or you'd need a "spot" approval. This can also be time-intensive. In terms of rate, many lender suffer a hit to the rate they can offer for a condo vs. a single family residence. It can range from an eighth of a point to a half depending on the lending institution.

Be sure to contact a few lenders (including at least one banker) when you're ready, they will be able to give you accurate rate quotes for your particular scenario. You may also want to find out if you need a conventional or FHA mortgage, it will change both the rate and process you go through. Good luck!

Kind regards,

Jason Diperstein
E Mortgage Management
800-793-9633 ext. 156
jdiperstein@emmloans.com