Condo Buyers Frustrated in Hunt for FHA Mortgages

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FHA News Editor - Here we post articles each week on FHA/VA Government news.

Buying a condominium is getting trickier for anyone who wants to put down only 3.5 percent and have the government insure their mortgage. The issue isn’t just the borrower’s financial wherewithal. It’s the building’s, and plenty of condos no longer get a thumbs-up from the Federal Housing Administration. Since Feb. 1, 2010, condo buyers haven’t been able to secure unit-by-unit “spot” approval for FHA-backed mortgages if an entire building was not certified. Instead, the federal government set criteria to determine the financial viability of an entire building before deeming the project as FHA-approved, even if it had previously been certified. An approval lasts two years.

To read the entire article, please visit:
http://www.loansafe.org/condo-buyers-frustrated-in-hunt-for-fha-mortgages

SOURCE: Published by NAMP® Publishing Group, a division of the National Association of Mortgage Processors (NAMP) (http://www.mortgageprocessor.org)