My husband and I are under contract to purchase a condo in the city of chicago. We have been preapproved for

Asked by Sky****, 60614 Tue Jun 16, 2009

a FHA loan up to 415k...closing date it set for 6 weeks. Everything seemed set, but we found out today that the listing agent *that told us it was approved* is now telling us she was wrong. When looking at it getting spot approved, it seems impossible due to the fact that an association has only been formed for 8 months and needs to be for full year. The seller will not wait 4 months to close. What are some other options? A FULL condo approval? Will a FULL approval work for a condo that is a conversion? Or new construction, maybe?

Help the community by answering this question:

+ web reference
Web reference:

Answers

2
Steve Smither, , Palatine, IL
Tue Jul 21, 2009
Sky,

I would concur with Chris. FHA will want a conversion to be atleast 1 year.
Most likely you will have to terminate the contract and seek another property.
I would suggest to your real estate agent that she needs to make sure she shows you ONLY FHA approved condos or condo associations that have other units with FHA financing.
This is something they can find out pretty easy so that way you dont have this issue again.
If you have any further questions please do not hesitate to contact me anytime...
Sincerely,

Steve Smither
Ardain Mortgage
ssmither@ardain.com
847-942-5151
0 votes
Chris Covalle…, , Chicago, IL
Wed Jun 17, 2009
Hi Sky,
On a full FHA approval, you wil usually need a 1 year seasoning on the construction/conversion. Everything else regarding a full approval (presale/occupancy ratios, etc.) is actually less than or equal to the requirements for a spot approval so this may be an option, though it will take some time to get approved.

Please advise if any questions,
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more