An Affordable Option to Condo Purchases That Doesn't Have to be FHA Approved
You've applied for a mortgage, you've provided all of your documentation and you've been pre-approved for a loan. However, based on what you've been pre-approved for, all you can afford to purchase is a condo.
That's ok though, you don't need much and you just want to be able to buy your own place so that you can stop throwing your money away on rent - right?
Unfortunately though, purchasing a condo these days has become incredibly challenging. Based on the FHA loan that you've been pre-approved for, you are limited to only considering units that are in FHA approved complexes.
So many condo complexes have absolutely taken a beating during this down market and as a result, they have lost their FHA approval status. Once again, getting a condo complex approved with FHA can be a very challenging process.
Now there's another option for condo purchases. Fannie Mae offers their HomePath program that is specifically designed to help reduce their inventory of foreclosures. Fannie Mae's HomePath program offers the following benefits to home buyers:
- Low down payment (lower than FHA) and variable mortgage terms
- Flexible credit guidelines
- No monthly mortgage insurance
- No appraisal fee
- Home warranty is included with the purchase at no charge
Right now, there are more than a hundred HomePath condos in Los Angeles county. From the sandy shores of the South Bay to the rolling hillsides of the Santa Clarita valley, there are available condos just waiting to be purchased.
Whether you're looking for a place with some spectacular mountain views or something within walking distance to the beach or maybe you just need to be downtown close to work, whatever it is you're looking for, HomePath probably has a condo that's just right for you.
No more worrying about whether or not its FHA approved and no more stressing out about whether or not it's going to appraise. These two benefits alone are worth at least looking into what this program has to offer and the eligible properties in the program.
Today's real estate market and lending environment can be really scary, which is why it's important to get as much information as possible before starting your search. Finding out more about affordable home loan options and getting pre-approved is an absolute must.
Stay tuned for Part 2 where I will outline the benefits of this program to the first time investor or the home buyer looking for a vacation and/or second home.