If a Condo Project is NOT FHA approved, chances are that it is still Fannie Mae approved. If so, borrowers can still get conventional financing with 10% down. 5% must be the borrower’s own funds, and 5% can be a gift. There are advantages to the conventional financing despite the higher down payment requirements; these advantages include no “up front mortgage insurance” (like with FHA), and the ability to get out of mortgage insurance sooner (FHA requires MI for a minimum of 5 years).
Call Jay Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646