FHA/VA Low-Down Home Loan Mortgage Condominiums DTLA
Today, FHA and VA loans are at the top of the ratings. The L.A. Loft Blog has received an inquiry from Amira A. who says she is looking for VA approved lofts only.
Amira, I have some good news and bad news for you about low down payment. In Los Angeles, low-down payment loft and condo buyers have recently not been very successful using VA or FHA financing due to two big issues. The first is the market — inventory is low, and there are a large number of buyers, including a big percentage of cash buyers and buyers with 20% down or more. Given the same offer amount and terms, loft sellers will usually prefer to take a cash offer, followed by a 20% down offer. Those offers with less than 20% down payment will be considered less appealing, and then the FHA VA financed offers will usually be considered to be the least desirable by sellers because the financing can often take much more than 30 days to complete.
The second big issue is that FHA and VA have additional burdensome requirements that the sellers and condominium homeowner’s associations must endure to have a chance of getting building and property approvals. These days, since there are plenty of easy buyers, most HOAs and condo sellers have no motivation to complete the difficult paperwork that is required for the set of approvals that VA and FHA require.
That being said, single family homes that are in good repair have the best chance for quick FHA approval and purchase. Loft lovers and other condo buyers have had the best success when they forget about FHA/VA and buy a loft with a 5% down loan instead. Also, new construction developments would often provide the rare circumstance that a condo development is already FHA/VA approved, but these days, even they are not taking the time and effort to get the approvals.
Find out how to buy a loft with little or no money down. Fill out the online form:
To look up FHA approved condos, the wonderful HUD office provides a website that only works during business hours at https://entp.hud.gov/idapp/html/condlook.cfm.
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Copyright © 2016 This free information provided courtesy L.A. Loft Blog and LAcondoInfo.com with information provided by Corey Chambers, Realty Source Inc, BRE#01889449 We are not associated with the homeowner’s association, seller or developer. For more information, contact (213) 880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.
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