Problem with FHA loan on a Condo that does not meet all condtions
I am in the process of purchasing a condo on an FHA loan. The complex does not appear to be HUD certified so the loan officer is doing a spot approval. The problen is someone in the complex owns 10 of the 66 units which equates to roughly 15%. According to the FHA guidelines no one is supposed to own more than 10% of the units.
The loan officer mentioned something about trying to get an exception to this but according to the FHA website no exceptions can be made. Is it possible to get a spot loan if this condition isn't met? If not is my only alternative to get the project HUD approved, and how long does that process take?
Eric - I hope that you have solved your problem. I was talking today with one of the most respected lenders in Lodi and we were talking about that condo development.
I know the investor, a doctor, who owns quite a few of the units. The lender who I was speaking with has made FHA loans in that complex this year. He has a good relationship with his underwriters and they can make this work.
You can contact me directly and I will give you the lenders name. It is possible with the right lender.
Good Luck.
Steve Davis
good morning..if you are fortunate enough to be looking at a condo that is part of more than one phase...the investor that owns the 10 condos could involve more than just your phase....the spot questionaire can be "phase specific".....which means that only the phase your future home is located in need to be involved with the questionaire....not the total complex.......getting the entire devlopment approved could take more time and patience than you have.....best of luck....bob mcclure- success mortgage partners- plymouth, michigan...
Eric - you may have already worked through the financing issues with your condo. The truth is that there are no real 'rule of thumb' answers for your question. Lending, more specifically, underwriting today is a long and arduous process. The underwriting process has gone from fast and free in 04-05 to overly burdensome in 09. Hopefully it worked out for you and your already in you condo
Eric:
I am not a loan professional, so I can only go by what I have heard. If a project cannot get FHA spot approval then it cannot get HUD approval. So you may not be able to use FHA to purchase this property.
I work with a lender who can do 95% LTV lending which is not FHA. As long as you intend to occupy, can do a full doc loan, the loan is under $417,000 and your FICO is over 660, he will be able to help you out. If this meets your needs, contact me directly and I will provide you with his information. Hope this helps and Dare to Dream.
Shel-lee Davis
Real Estate Consultant
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
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