What the FHA?

The mortgage market has become very, very tight with regards to lending. Even real estate in fantastic areas such as Pasadena have been affected. As a result, most loans that are conforming (up to $417,000) require a 10% deposit and jumbo loans (over $417,00) are requiring 20% deposit. So it can be difficult even for those with excellent credit scores and a good source of income to get loans now.

Many are turning over to FHA loans now. FHA loans are insured by HUD and if a buyer gets and FHA loan, it is much easier to qualify. Some benefits include:
1. 3% deposit
2. Credit score is not important
3. Fixer uppers - the loan will actually include the costs to fix up properties

So how does one get an FHA loan for condos? Well, it depends upon whether the project is new or resale property. New condos need to be approved to get FHA. Resale condos should hopefully already be approved for FHA. What if a condo does not have FHA approval? We'll discuss that shortly.

We'll also cover what the seller can credit the buyer according to FHA guidelines and what they can't. Stay tuned.

To find out more about more about condos or real estate in Pasadena please visit our agent web site at http://www.DavidandPei.com or you can call us 626.922.4268 for a no obligation tour of Pasadena neighborhoods and its fantastic new construction and resale condos and townhouses.