Florida FHA Condominium loans, Florida FHA Condo Loan, Florida FHA condo mortgage
FHA Loans for Florida Condominiums
Florida FHA Condo Loans Insured through FHA Section 234(c)
FHA loans | Florida FHA lending limits | Florida FHA mortgage application | Florida FHA condominium refinance | Florida FHA approved Condos
The FHA/HUD Section 234(c) of the National Housing Act provides authority to insure any mortgage covering a Florida one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project. The Florida project may include dwelling units in detached, semidetached, row, garden-type, low- or high-rise structures. Generally these types of Florida properties are referred to as Condominiums.
Florida Condominium buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida Condo buyer the FHA program can simplify the purchase of a Florida Condominium, making the p financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA condominium loan program include:
Minimal Down Payment and Closing costs.
Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.
Easier Credit Qualifying Guidelines such as:
No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.
To apply for a Florida Condo Loan WWW. FHAmortgagePrograms.com
FHA/HUD will insures mortgagees against losses on mortgage loans used for buying a Florida condo or to refinance individual Florida condom mum units in eligible FHA approved condominium projects provided that they meet certain guidelines.
A.
Project Eligibility. The Florida condominium project must be on HUD’s approved condominium list.
B.
Applicant Eligibility. Eighty percent of the HUD-insured mortgages in a Florida condominium project must be the principal residence of the owners (owner-occupants).
C.
Maximum Insurable Mortgage: Same as Section 203(b) (except that the mortgage amount must be in multiples of ). Check Florida FHA loan limits.
D.
Minimum Investment: Same as the FHA loan Section 203(b).
E.
Mortgage Term: Same as FHA loan Section 203(b).
F.
Mortgage Insurance Premium
: Monthly .55 +Upfront MI of 1.75%
G.
Refinancing: Same as Section 203(b).
If the Condominium is not approved then the Lender may go through the “Spot Approval” process.
The following requirements must be satisfied before a spot loan is endorsed:
•
The Florida condominium project must be complete. There should be no ongoing or anticipated addition of any units, common elements, and/or facilities.
•
Control of the common areas of the project must have been turned over to the unit owners association for at least one year.
•
The Condominium association must provide evidence that the project has the appropriate hazard, liability and flood insurance.
•
Individual Condom mum units in the project must be owned in fee simple or be an eligible leasehold interest. The project’s legal documents must provide for undivided ownership of common areas by unit owners. By virtue of this ownership, unit owners must have the right to use all facilities and unrestricted common elements.
•
The project’s documents should not place any legal restrictions on conveyance. Any provisions that seek to limit the free transferability of title is generally unacceptable. Such restrictions include rights of first refusal and restrictive covenants. Certain governmental or nonprofit programs designed to assist in the purchase or rental of low- or moderate-income housing are exempted from the restrictions on conveyance provisions.
•
At least 90% of the units in the project must have been sold.
•
At least 51% of the units in the project must be owner-occupied.
•
No single entity may own more than 10% of the units in a project. “Entity” includes an individual partnership, corporation, limited liability company, limited liability partnership, joint venture, investor group or other natural or legal person qualified to hold an interest in real property. The 10% restriction does not apply when the ownership of less than three units would disqualify an otherwise eligible project.
•
HUD/FHA recognized that the 10% cap on the number of units that may secure FHA insured mortgages in a given project can place a small regime at a disadvantage, since only a few units will invoke the limit. Accordingly, a two-tiered system was established. For condominium projects having more than 30 units, no more than 10% of the units may have FHA insured loans at any given time. Florida FHA Condominium projects consisting of 30 units or less, can have up to 20% of the units encumbered by FHA insured mortgages under the spot loan rule.
