Home Buying in 92115>Question Details

Donna Kuns, Home Buyer in San Diego, CA

how to get around fha guidelines.?

Asked by Donna Kuns, San Diego, CA Tue Nov 15, 2011

Just letting everyone know, I appreciate their response.
I was just hoping for a miracle, and I'm the only one I know of.
I have a good realtor and Mortgage broker, that are doing everything possible for me.
Thanks for ypur responses, Donna

Help the community by answering this question:



You asked, "How do I get around the FHA condo guidelines"?

The only way to get around these gidelines is to put more money down and get a conventional loan.

Until then, you must work thru the system and get the condp project approved with FHA. This takes time and is not always possible.

There are many reasons why the project may not be approved. These rules are there for your protection and for the protection of the taxpayers who stand to loose if you can not pay your mortgage (as has recently happened to many).

I wish you Success & Patience.

Dennis Smith, ABR, SRES, e-PRO, CDPE, Realtor® Lic #00476662
RE/MAX By-the-Sea, Carlsbad CA
1 vote Thank Flag Link Tue Nov 15, 2011
Actually, FHA guidelines are easier than FNMA, in general. But yes, FNMA and FHA are simular but what you are saying does not make sense.
0 votes Thank Flag Link Thu Dec 1, 2011
No, the condo does not need to meet FHA guidelines for a conventional loan. That could be a lender overlay, but does not make sense to me.

Info on Lease Option or Rent to Own:

Criminal Credit Repair:

Down Payment Assistance in KY:
0 votes Thank Flag Link Thu Nov 17, 2011
I'm buying conventional, not fha, but as I understand it, the condo still has to meet fha guidelines?
0 votes Thank Flag Link Thu Nov 17, 2011
Hi Donna,

I was on vacation, but wanted to give you another perspective on buying a condo with an FHA loan. I know it's harder now than ever, but the rules are there for the bank's protection - they're protecting their interest, which would be 96.5% of it - against falling values. So, as you pay down that loan, these interests are really your interests.

One huge problem is the amount of renters in the units. Renters historically, don't maintain a property like an owner would, and that can have an affect on value. Also, delinquent HOA fee payments have an affect on owners. Where would the money come from to repair a roof that needs fixing if the money isn't in the reserves, for example? HOA's can slap an assessment on the owners to pay for such things. I've seen poorly maintained complexes, with peeling paint and dry rot - prime conditions for termites. Those fixes are really expensive! Will you have the $$$ to pay for that in addition to your regular payments?

So, if you actually find a lender who'll bypass FHA criteria and you find you need to resell in one of these non-FHA approved complexes, you may end up selling for under what you paid, because you may need to wait for an all cash buyer or an investor. First time buyers rarely have 20% to put down, and investors lowball.

And a 20% down payment doesn't guarantee you'll get a condo either. Conventional loans have condo criteria too. The conditions now are really tough, I know, but worth it to you as an owner in the long run.

Good luck, have patience, and submit strong strategic offers!

0 votes Thank Flag Link Thu Nov 17, 2011
You actually don't have to put more down to get a conventional loan to get around FHA guidelines. You can get a conventional loan with 3% down. But conventional guidelines are much stricter. One big advantage to conventional vs. FHA though is conventional loans do not require a joint credit report. So if a spouse has debt you don't want to include in ratios or credit issues, going conventional gets you around having to pull their credit. FHA of course you need to pull the spouses credit even they are not on the loan.
0 votes Thank Flag Link Wed Nov 16, 2011
Very astute and forthright answer Mr. Smith
0 votes Thank Flag Link Wed Nov 16, 2011
No problem donna, good luck!
0 votes Thank Flag Link Tue Nov 15, 2011
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