With all of the recent changes in financing, condos are no longer eligible for 100% conventional financing. My experience has been that conventional financing requires a 10% down payment in our current Twin Cities market.
For buyers who don’t have cash available for a down payment, federal FHA and VA home loan programs can be good alternatives.
FHA financing requires 3% down, which can be offset by funds from the Nehemiah Program.
VA financing with 0% down and no mortgage insurance may be an option if you are a military veteran. Click here to see if you are eligible and for frequently asked questions, answered by the US Department of Veterans Affairs.
Talk to your loan officer to determine the best financing scenario for your situation. If you decide to use FHA or VA financing and are purchasing a condo, be aware that not all condominium projects are approved for FHA and VA financing.
The MLS listing should state whether or not a complex is approved for FHA/VA financing, but don’t depend on 100% accuracy. If you find a complex you really like, investigate further. Check with your lender, or click here to search for FHA/VA-approved condominium projects by location, name, or status at the US Department of Housing and Urban Development.
If you find the complex you like is not currently approved, you could apply for ‘spot’ loan approval of a unit if you are using FHA financing (click here for ‘spot’ loan financing requirements). Unfortunatley, properties using VA financing are NOT eligible for ‘spot’ financing…the entire complex must be approved.
Check with your lender to determine your options when you have found a condo you would like to purchase.
This information is very helpful. Keep posting.
Mitch
When an end is lawful and obligatory, the indispensable means to is are also lawful and obligatory .Do you understand?