Home Buying in 90292>Question Details

Leslie Overt…, Other/Just Looking in Marina del Rey, CA

Is it possible to take out a FHA loan if the home you're buying is above the $729,000 ceiling?

Asked by Leslie Overton, Marina del Rey, CA Wed May 20, 2009

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It is possible you would have to come up with the different above the required loan for FHA. Keep in mind if the desired property is a condominium, townhouse or (PUD) single family home the project has to be pre-FHA approved. On the Westside there is little listing inventory and homes are seeing multiple offers. You are competing with all-cash or buyers with substantial down payments. FHA buyers have to be aggressive but offer maybe overlooked for conventional-loan buyers or all cash buyers. Be prepared for what you what type of buyers you are competing against. FHA is a good mortgage tool buyers should be just as qualified as conventional potential buyers. Do not give up search if overlooked on offers you may submit. Keep searching.

Gail Mercedes Cole
EXP Realty
310-853-9933
0 votes Thank Flag Link Sat May 25, 2013
Leslie keep in mind that if you are competing with All Cash, or 20% down payment buyers the listing agent and the seller will be less likely to go with an offer that has two loans and virtually no Down Payment. I do not want to be the bad news delivery person unfortunately that is reality. The Greater Los Angeles Real Estate Market is so hot and fast that the type of offer you are describing will be less likely accepted by the sellers. This is not to discourage you it is simply to prepare you that you might be writing a few offers before one will be accepted.

Endre Barath,Jr
Prudential California Realty
Beverly Hills, CA

homes@endrebarath.com
310.486.1002 (m)
Web Reference: http://www.endrebarath.com
0 votes Thank Flag Link Sat Apr 13, 2013
You can purchase above the loan max of $729,750 with 3.5% downpayment sales price approximately $757,000. Any sales price above that amount would require the down payment different between sales price and FHA loan maximum. Example: Sales price $850,000 FHA loan $729,750 = $120,250.00. Check with conventional and FHA lenders for required down payment based on sales price. Depending on sales price the FHA downpayment requirement maybe less the conventional downpayment.

Gail Mercedes Cole
EXP Realty
0 votes Thank Flag Link Thu Feb 14, 2013
But can you "make up the difference" with another loan?
0 votes Thank Flag Link Wed May 20, 2009
Yes, as long as you make up the difference.
0 votes Thank Flag Link Wed May 20, 2009
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