Is That Condo Complex FHA Approved? ~ FHA Approved Condos in Shelton, CT
The primary reason for this is the low down payment requirement of 3.5%, which is much less than the typical conventional loan counterpart.
Buying a condo has its own appeal also for first time buyers. They can typically buy a condo for less than a house and still experience the benefits of home ownership.
So, consider this scenario. A first time buyer (or any other buyer) does not have a lot of money to put down. The same buyer has stable employment and a good credit history. An FHA loan just might be the way to buy that condo. The buyer gets a preapproval from an experienced FHA-approved lender or broker. The buyer finds the perfect condo.
BUT WAIT!! Is the condo complex where the buyer wants to buy FHA approved? What this means is that the condo homeowners association or property management applied to HUD (Housing and Urban Development) and passed all the requirements for approval. The condo complex MUST be on the HUD approved FHA list in order for this buyer to get an FHA loan to finance the purchase. No approval -- no FHA loan.
What should this buyer and buyer's agent have done prior to condo shopping? They should have checked the HUD website which lists all approved FHA condo complexes.
Select City/State/Condo Name to see if a specific condo complex is approved, or just select City/State to see all the approvals for that city.
Here are the FHA Approved Condo Complexes in Shelton CT (For easier reading, use the link above)
An incorrect assumption is that an FHA mortgage is for low income individuals, and/or individuals with poor credit, or only first time homebuyers. Not true. Talk to a qualified FHA lender BEFORE beginning a condo or home search to get all the specifics and costs.
But remember, if a condo purchase is of interest and that 3.5% down payment works, then BE SURE to check the HUD site FHA condo approvals before the condo shopping begins.