FHA loans are one of the strongest financing options for first-time buyers, and condominiums are one of the most affordable and easily maintained property options—but FHA-backed condo loans have not always been an easily accessible mortgage solution. However, with new FHA updates from the Department of Housing and Urban Development (HUD), the condo approval process is about to change in a lot of ways.
Under previous FHA guidelines, condo certifications only lasted for two years before developers or project owners required re-certification. Fortunately, the FHA will extend the condo certification window another year, giving project owners a three-year period before requiring re-certification. And when reapplying, developers will no longer have to resubmit a complete application; they’ll just need to upload the amended information.
According to the current FHA regulations, buyers are ineligible to obtain a single-unit FHA loan if the entire complex isn’t already FHA approved. With the new FHA amendments, spot approvals allow the FHA to approve single condo units within a community; however, the amount of units eligible for FHA insurance varies depending on the total units in the complex. For example, in unapproved projects with over 10 units, no more than 10% of units are eligible for an FHA loan. And in unapproved complexes with under 10 units, no more than two units are eligible for an FHA loan.
The new FHA guidelines are opening up a lot of incredible homeownership opportunities for first-time buyers, allowing them to easily finance in mixed-use developments and complexes with lower owner/occupant ratios. And now that more condo units will have the opportunity for approval, HUD projects that more condo projects will start appearing in development.
Starting mid-October, condo financing may be more affordable and more available to countless buyers, which means now is the best time to get approved. If you want a head start on the condo market competition, partner with the mortgage professionals at Butler Mortgage. We can guide you through the approval process or help you find another financing option that best suits your situation. To learn more about the new FHA amendments or to find a different mortgage solution, complete our free consultation form or call 407-931-3800.
Getting a first mortgage can be a difficult task. Raising the necessary funds to make the first down payment can be stressful for some people, and if you do not have a great credit score or are relatively unestablished, this can become an even more frustrating process. However, there are ways to finance a home purchase other than a traditional mortgage. Here are some details about one of these programs: the Freddie Mac Home Possible mortgage.
Home Possible Specifics
A Freddie Mac Home Possible mortgage is a way for lower-to-moderate income clients to get their first mortgage when other paths are out of reach. The main advantage of this loan is the low down payment: it only needs to be 3% of the cost of the home. Freddie Mac loans also have more flexible credit requirements than traditional loans, which can especially help young people who are relatively unestablished have their mortgage application approved.
Qualifications for Freddie Mac
In order to get a Freddie Mac Home Possible mortgage, you must meet certain criteria. To begin, the annual income of the buyer must not be greater than 100% of the median income limits of the surrounding area. However, this restriction might not apply in underserved areas. In addition, you cannot have over 43% to 45% of your income going towards debts, but you might be able to qualify anyway if you consult loan professionals. Also, you must also be a first-time homebuyer and take a homebuyer course online or in-person.
Apply for a Home Possible Mortgage
If you deeply desire to be a homeowner and think that you could qualify for a Home Possible mortgage, the most important step is to contact a knowledgeable mortgage professional and apply. A Freddie Mac Home Possible Loan can help you buy your first home when you didn’t think it would be possible financially. Here at Butler Mortgage, we can help you determine if you are eligible for a Freddie Mac mortgage and then guide you along the process towards owning your first home. Call us today at 407-931-3800 for a free consultation!
Finding your dream home can be tough, but acquiring a practical mortgage loan can seem even more difficult. If you are new to the home buying market, it is important to understand the different types loans available to you so that you can make the best decision. In particular, you need to know more about the Fannie Mae HomeReady loan, since it was designed particularly for first-time home buyers. To help you out, here are some of the most frequently asked questions regarding Fannie Mae HomeReady mortgage loans.
Do I Qualify for a Fannie Mae HomeReady Loan?
Fannie Mae HomeReady was designed with first-time homebuyers in mind. Since you only have to make a down payment of at least 3%, you don’t have to have a high income or large savings to qualify. And candidates with low to moderate income can even acquire a HomeReady loan with a credit score as low as 620, although having a 680 or higher will give you more favorable terms, such as a better interest rate.
What Are the Advantages of a Fannie Mae HomeReady Loan?
The minimum down payment of 3% for Fannie Mae HomeReady loan is an attractive feature to many people with limited savings. This payment can even be made with monetary gifts, grants, and Community Seconds, making it even more affordable. With a HomeReady loan, you also receive reduced private mortgage insurance coverage that can be cancelled once your home equity reaches 20%. Another advantage of HomeReady is that boarder or rental income can be factored into the application income to help improve the borrower’s debt-to-income ratios.
Is the Fannie Mae HomeReady Loan Program Right for Me?
The needs and wants of homebuyers are diverse, which is why HomeReady loans were created to help increase eligibility and simplify the process. HomeReady has some of the benefits of government-insured mortgages, without some of the negative strings attached. If you want to find an affordable way to get the home of your dreams, HomeReady may be the right fit for you.
Where Can I Get a Fannie Mae HomeReady Loan?
Butler Mortgage has over 25 years of experience working with both first-time and experienced buyers looking to acquire a mortgage loan in Central Florida. If you want to learn more about whether you qualify for Fannie Mae HomeReady or any other first-time homebuyer loan program, contact our mortgage experts. Call us today at 407-931-3800 for more information.