FHA Approved Condo Database

Is the condo you want to purchase FHA approved?  Before you make an offer, search the condo project to ensure that it is.  We have provided a link for the approved San Diego FHA condo database. Search San Diego FHA Approved Condos.

Not approved?  Here is the process for a San Diego Condo to become FHA Approved?

Per HUD Mortgagee Letter 2009-19, here is a partial sample list of the requirements.

  • Projects must consist of two units or more.
  • Projects must include hazard and liability insurance and, when necessary, flood insurance.
  • Maximum of 25% of the project’s total floor can be used for commercial purposes
  • Maximum of 10% of the units may be owned by one individual
  • At least 50 percent of the total units must be sold prior to funding of any mortgage on a unit
  • At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units.

What Does FHA Fees Mean For a First Time Home Buyer in San Diego?

FHA announced that they have increased both the monthly and upfront fee 25 BPS, effective April 18, 2011.

Even though the 3.5% low down payment still exists through FHA, the monthly and upfront fees will cost a homeowner a little more these days.

So what does that mean for a First Time Home buyer in San Diego? For a typical $300,000 priced home, you will still be able to put the required 3.50% down payment, but the monthly fee will increase $48 and the upfront fee will increase $750.

An FHA loan is still highly recommended for a First Time Home buyer in San Diego because of the other benefits that come with the loan program:

  1. 3.5% low down payment can be a gift
  2. Debt to income ratios are allowed up to 50%
  3. The seller can pay for all of the closing costs
  4. Lower credit scores
  5. Non-occupant co borrower allowed
  6. No prepayment penalty

More FHA Guidelines.

Co-Signers make FHA a Better Option

The FHA mortgage program allows for a family member to have a joint interest in a property

The ability to have a co-signer is a unique feature that is not offered in most loan program terms. The most unique feature is that the co-signer does not have to live in the property. This is called a Non-Occupying Co-Borrower. A Non-Occupying Co-Borrower is a tremendous tool for a First Time Home Buyer. This type of loan program is often referred to as a “Kiddie Condo”. For the record, the property does not have to be a condo. A “Kiddie Condo” is where a child is attending school and the parents qualify as a non-occupying co borrower.

The co-borrower is qualified the same way as the primary borrower. A detailed review of their income, assets, and credit are analyzed. The combined income, assets, and monthly liabilities of both the borrowers and co-borrowers are pooled together to determine eligibility. The property must be a one unit owner occupied property. If the property is multiple units, a minimum of 25% down payment is required. All co-signers are required to sign the entire FHA loan package.

The first step in qualifying for an FHA Loan is to speak with an FHA consultant who can analyze your unique situation. Click here to start the FHA Loan Process. You will learn how much of a house you can afford and the exact monthly payments you will have on your new home. Your consultation will involve a detailed overview of your income, down payment source, and credit history. Once you speak with a FHA Loan Consultant you will have the peace of mind knowing that you are fully approved for a new FHA Purchase Loan.

Top Ten Things to Know if You’re Interested in a FHA Reverse Mortgage

Top Ten Things to Know if You’re Interested in a FHA Reverse Mortgage

Reverse mortgages are becoming popular in America. HUD’s Federal Housing Administration (FHA) created one of the first. The Home Equity Conversion Mortgage (HECM) is FHA’s reverse mortgage program which enables you to withdraw some of the equity in your home. The HECM is a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. You can receive free information about reverse mortgages in general by calling AARP toll free at (800) 209-8085. Since your home is probably your largest single investment, it’s smart to know more about reverse mortgages, and decide if one is right for you!

1. What is a reverse mortgage?

A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. FHA’s HECM provides these benefits. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

2. Can I qualify for FHA’s HECM reverse mortgage?

To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are further required to receive consumer information from an approved HECM counselor prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on (800) 569-4287 for the name and telephone number of a HUD-approved counseling agency and a list of FHA-approved lenders within your area.

3. Can I apply if I didn’t buy my present house with FHA mortgage insurance?

Yes. It doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new FHA HECM will be FHA-insured.

4. What types of homes are eligible?

To be eligible for the FHA HECM, your home must be a single family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

5. What’s the difference between a reverse mortgage and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities. With an FHA HECM you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”

6. Can the lender take my home away if I outlive the loan?

No. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home.

7. Will I still have an estate that I can leave to my heirs?

When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

8. How much money can I get from my home?

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You can use an online calculator like the one on the AARP website to get an idea of what you may be able to borrow.

9. Should I use an estate planning service to find a reverse mortgage?

FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA lender. FHA provides this information free, and HUD-approved housing counseling agencies are available for free or at very low cost, to provide information, counseling, and a free referral to a list of FHA-approved lenders. Search online or call (800) 569-4287 toll-free, for the name and location of a HUD-approved housing counseling agency near you.

10. How do I receive my payments?

You have five options:

  • Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
  • Term – equal monthly payments for a fixed period of months selected.
  • Line of Credit – unscheduled payments or installments, at times and in amounts of your choosing until the line of credit is exhausted.
  • Modified Tenure – combination of line of credit with monthly payments for as long as you remain in the home.
  • Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

For more information fill out our quick and easy FHA Loan Application.

This page is located on the U.S. Department of Housing and Urban Development’s Homes and Communities Web site at http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm.

First Time Home Buyer – Necessary Documents

What documents will I need as a First Time Home Buyer?

Good question! If you have everything with you when you visit your lender, you will save a time and effort.  As a First Time Home Buyer (FTHB) your lender will review the documents below for accuracy and give you a dollar amount for which you are approved.  FHA loans have guidelines that could require additional documentation.

Below are items needed when applying for a FHA loan:

  1. Social security numbers for both your and your spouse
  2. Copies of your checking and savings account statements for the past 3 months
  3. Copies of any other assets including stocks, bonds, or cd’s
  4. Recent 2 paycheck stubs detailing your earnings
  5. List of all credit card accounts and the approximate monthly amounts owed on each
  6. List of account numbers and balances due on outstanding loans, such as car loans
  7. Copies of your last 2 years of income tax returns
  8. The name and address of someone who can verify your employment
  9. Copy of your Driver’s License
  10. Landlord information (If applicable)

The first step in qualifying for an FHA Loan is to speak with an FHA consultant who can analyze your unique situation.  Click here to start the FHA Loan Process.  You will learn how much of a house you can afford and the exact monthly payments you will have on your new home.  Your consultation will involve a detailed overview of your income, down payment source, and credit history.  Once you speak with a FHA Loan Consultant you will have the peace of mind knowing that you are fully approved for a new FHA Purchase Loan.