Your loan officer can better advise as to the best loan option for you after he/she has reviewed your overall financials. FHA loans cannot be used for co-op purchases, and it excludes some condos.... more
Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously, therefore for answers to questions visit with any licensed loan officer; keep in mind that FHA loans require 3.5% down....... more
No, if you're putting less than 20% down payment, you're going to get what's called a full review. This means that ANY lender you go to will need to document the condo's current budget and it must meet Fannie Mae standards, which state that the condo must be budgeting for 10% reserves of total operating budget. There might be a couple lenders who portfolio loans where they can do unwarrantable condos, but there really are not many of them
I suggest you either look for a condo who does meet these standards (which can be difficult depending on where you're looking), or try to come up with 20% down payment, in which case your lender will be able to do what's called a limited condo review. In this limited review, such budgets would not be an issue.
Senior Loan Officer
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
It isn't a requirement that you find tenants, but if you want to use rental income to help you qualify then it's a requirement that there are tenants. The rental income can be considered without a prior landlord history if you use a Fannie Mae loan program or FHA financing (if you have a 2-year landlord history, then Freddie Mac loan programs will allow the rental income too)... 75% of the rental income (if Fannie or Freddie financing) or 85% (if FHA financing) can be used. FHA financing would only be for owner occupied properties though. You would need signed lease agreements and most likely receipt of the security deposit and/or 1st months rent.
Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct... more