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

IS 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