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April 6th, 2009 7:44 AM by David W. Welch
If you are considering a condo, do not expect to finance it easily. First, if you are going to purchase using FHA, make sure it is an FHA or HUD approved condo. You can search here http://www.myfha.net/FHAguidelines/FHAcondos.html. If it is not on this list you are not going to get an FHA loan. If it is on this list, there is apparently on guarantee that you are going to get an FHA loan either. I recently had a lender deny a loan on an FHA approved condominium because there were too many developer owned units. Another lender did not have an issue with this, but denied the loan for something else. It seems like the lenders are looking for opportunities to deny loans. Trust me, I understand that they need to be prudent, but someone needs to ease up on the condos. They are a great option for a lot of buyers, and most of them need loans. I have one condo seller that is offering to hold the mortgage to see if that will help get his place sold. It is definitely something to consider. Of course, he also has it up for rent. If you have cash, the prices on many units is getting quite low. You can almost certainly generate a good return on your investment. Just be careful of the fees, taxes and the financial condition of the association.
David Welch, Real Estate Optimist