Financing in Brighton>Question Details

Karen Parris, Home Buyer in Brighton, MI

I'm having a very difficult time finding a condo that will accept an FHA or Rural Development mortgage. One community I have in mind is listed

Asked by Karen Parris, Brighton, MI Sun May 16, 2010

on the FHA approved condo website, but when I look at the condos for sale, the terms are Conv or Cash only. Can someone explain this? How do I find a condo community that will accept these mortgage types? Thanks!

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Karen,

You answered my first question, which was whether the condo was on FHA's approved list, or not.

If a property is eligible for the financing, it then needs to meet the specific FHA requirements, so while a complex may be approvable, it is possible that a unit in it may not be. If you do an FHA 203k, that can open many doors, too.

Sometimes agents don't pay attention to how they are listing a property and may miss listing it with FHA allowed financing.

If you do not yet have a buyer's agent, you need one!! I attend church in Brighton and do work in the area, so if you are not working with a designated buyer's agent, it would be my pleasure to speak with you...
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Sun May 16, 2010
Thank you Jeanne and Kris for your responses.
I thought I heard somewhere that the homeowners association has a say in what types of mortgages can be used. Is this the case?
The condo I am looking at IS on the FHA approved list on the FHA website, but the selling realtor has told me that the terms are conventional or cash only.
Can the seller or association discriminate against me because of the type of mortgage that I choose to use?
0 votes Thank Flag Link Sun May 16, 2010
Hi Karen, you are encountering the impact of the change in the FHA rules that took affect earlier this year. Before, FHA would do "spot approvals" of individual units in communities that might lack the overall FHA approval. They are no longer doing spot approvals and that means that the community must be approved or willing to be approved in order for FHA financing to be a possible alternative for you in your purchase.

A couple I am working with here in NJ experienced this very dilemna. What we found is that there are really very few communities that are approved, and many that are not are hesitant to go through the approval process. In the end we shifted our focus to single family homes.

My suggestion to you is this -- talk to your agent and lender about identifying those communities that are approved and focus on available inventory in those communities. There is a website they have access to that has the information - be sure to check it often because approvals can expire/change.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Sun May 16, 2010
Karen, often the listing agent will neglect to list FHA and VA as terms that are acceptable to the seller. If you see the condo complex on HUDs approved site ask your buyers agent to show you the condo. He / she can write up the offer for you stressing that you are approved for the FHA mortgage and since the complex is approved, it shouldn't be an issue.

One caveat: If the condo itself won't pass an FHA appraisal for some reason (condition of the unit) that could be one reason why the terms aren't offered. However, you won't know until you and your agent take a peek inside.

Good luck!
Web Reference: http://chataboutmacomb.com
0 votes Thank Flag Link Sun May 16, 2010
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