I think thy need money down.....
Let m know if you need a referral.... I don't do them but a realtor friend of mine knows a source.
(214) 763-4629 cell/text/nights/weekends
Lending all across the Great State of Texas!!
A. Properties that have multiple owners, like a condo or a townhouse, must not be owned mostly by investors. FHA will not approve a loan on properties in that development until the percentage of owners rises above a certain level. Condos where you can buy are "FHA approved".
B. FHA will not insure homes that have certain defects in them. Usually these, as Becky points out, are HUD foreclosures sold as-is, and are labeled "uninsurable". Those defects can be corrected using a renovation loan. FHA has a 203(k) loan that sets aside an escrow account for the repairs to be done after closing. Only certain lenders will offer a 203(k), because they are a lot of work on the lender's part.
So, if the problem is "A" (that the property is owned by too many investors and is not approved for FHA loans), there is not much you can do except use a conventional loan.
If the problem is "B" (that lender-required repairs must be completed to qualify the property), you can use a 203(k) loan from a lender who offers them. By the way sometimes a 203(b) will actually work, too.
NOT seek FHA certification. Yes this will reduce the number of potential Buyers - but the idea is to make sure that future Buyers are "well qualified" and don't mind putting 10% or 20% Down and are investing for the long-haul.
I digress - getting back to your question - the most obvious answer would be to get a Conventional Loan instead.
This will require at least 10% or 20% Down however. Lenders want to be sure that the loan and property are "conforming" which means they will meet guidelines to resell the loan in the Secondary Mortgage Market.
The Government and the Banks both are basically going to require all home buyers in the future to put more money Down and there is going to be no way of getting around it. It's to reduce "speculation" and "flippers" looking to make a quick buck.
One other suggestion would be go directly to a Mortgage BANKER as opposed to a BROKER.
Bankers have "hard money" sources - and will sometimes make exceptions if you've got excellent credit and
My office is in Far North Dallas - and I'd be happy to help you if you have any further questions.
JAY NAREY ABR, ALHS
Keller Williams - Preston Rd.
HUD foreclosures state online whether they are insurable with an escrow or uninsurable. Often the condition report provides the reason why it's uninsurable or it details the repair work that must be done for it to be FHA insurable.
Other foreclosures and short sales under $50K will likely be CASH ONLY situation since it's very hard to get anything under 50K financed through the typical channels....it's not impossible, but often if you can get financing for something under $50K, the closing costs or interest rate is prohibitive and most buyers change their mind about doing it. If the home is priced above $50K, it is usually finance-able one way or another. If the property needs work to make it livable, there are HomePath and 203K rehab financing solutions, for instance.
There is a lot to know about these various financing options and not all lenders handle these kinds of loan. If you would like more detailed information about these options, please give me a call or email and I will be happy to elaborate on them all.
Coldwell Banker APEX REALTORS
214-918-1686 Cell anytime
One check this website for FHA approved condo projects.
Another is get a lender that knows condo financing inside and out.
Even my normal goto lender for most loans I don't always use for condo financing.
Lots and perhaps even most will tell you they can do condo loans, but there is often more
to the story as you have experienced it seems. As you can see here, not even all the realtors
know what you're asking.
Feel free to drop me a line and I'll share with you the best lender I know and recommend specifically
for condo financing.
Keller Williams Realty
Many lenders won't issue mortgage if the ratios are off
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
I wanted to respond to you regarding your question. I have an array of varous contacts in the Hard Money and Lending business and wll be happy to guide you more thoroughly to locate exactly what type lending you will need. Please feel free to call me on my cell and we can work together from there.
Kim Schumacher, Realtor