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Condos: 3% Down Instead of FHA; We’ll Walk You Through the Options

condo-complex-skyIS THIS CONDO COMPLEX FHA APPROVED?

We constantly have buyers and Realtors asking us if various condo complexes are FHA approved.

We use this Hud Website to see if a condo complex is approved, and our answer is usually no.

This is b/c so few condo complexes are FHA approved.

We realize this often shuts out buyers who have to take advantage of FHA’s flexibility b/c of high debt ratios and/or credit issues.

3% DOWN CONDO PURCHASE OPTIONS

BUT – we want to remind everyone that Fannie and Freddie both offer 3% down financing for condos all the way up to the high balance loan limit of $679,650 (in most cases).

HOMEREADY, HOME POSSIBLE, and CRA PROGRAMS

In addition, for borrowers under certain income limits (up to $136,360 now in some areas) and in certain locations, Fannie and Freddie offer extremely favorable terms with their 3% down options.

These are available under Fannie’s HomeReady program, and under Freddie’s Home Possible program.

There also special “CRA” benefits for buyers in “underserved” areas – which cover far more territory than most people expect.

There are a myriad of rules and limitations, and fortunately we know them all :).

My main point is that a 3% down option is available to almost all condo buyers.

And we are more than happy to walk everyone through the maze of options.

Finally, I want to add that these programs are available for single family homes as well, and not limited to just condos. I only highlight condos in this blog to illuminate a viable non-FHA option.

Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646