Monday, January 11, 2010

Buying a Sacramento Condo? See if the community you like is FHA or VA approved...

I have received several inquiries over the last few months from buyers seeking to purchase condos in Sacramento. Those buyers are enticed by the idea of home ownership for an affordable price, low maintenance living, community amenities (clubhouse, swiming pools, tennis courts, fitness centers), and more. There are many benefits to living condos...heck, the first home I bought at age 19 was a condo.

Many of the buyers who have been contacting me are seeking to use FHA or VA loan programs in order to make their purchase. UGH.
Nothing frustrates me more than having to tell excited would-be condo buyers that the community they absolutely love is not approved for FHA or VA loan programs. You may think - why can't all condos be purchased with these loan programs? Well...I wish I knew the exact answer!! No - in all seriousness, in order to qualify for FHA and VA loan programs, condos must meet certain criteria, and communities / entire associations must be approved by The US Department of Housing & Urban Development for FHA, or The US Department of Veterans Affairs for VA, in advance. At one point in time, there were "spot approval" processes where an individual unit could be approved on a case-by-case basis...but options to do that are limited or just don't exist anymore.

So how do you find out if a condo is VA or FHA approved? There are two online tools that buyers (or sellers, for that matter) can use to look up approved condo communities. The tool to look-up approved condo communities for FHA loans is here, and the tool to look-up approved condo communities for VA loans is here. I use these tools all the time, and find them to be invaluable!

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