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).
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