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...
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?
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.
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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.