Fha Mortgage Loans Raleigh

NC FHA Condominium Loan Details

The FHA Program for Condominiums is a tiny bit different from the program that covers “traditional” Single Family Homes. Originally, the program was designed with differnt mortgage insurance coverage, that is no longer the case. The program, HUD Section 234(c) of the National Housing Act provides mortgage insurance for any mortgage loan covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project. All projects are included in the 234 (c), including dwelling units in detached, semidetached, row, garden-type, low- or high-rise structures. These types of properties are referred to as Condominiums.

HUD / FHA do not make loans, they insure them thruogh the mortgage insurance program. HUD will insure mortgagees against losses on mortgages used for buying a condo or to refinance individual units in eligible condominium projects provided that they meet certain guidelines.

A.	Project Eligibility. The condominium project must be on HUD’s approved condominium list.

B.	Applicant Eligibility. Eighty percent of the HUD-insured mortgages in a condominium project must be the principal residence of the owners (owner-occupants). This can be determined by calling the property management group.

C.	Maximum Insurable Mortgage: Same as the “regular single family” Section 203(b) (except that the mortgage amount must be in multiples of $50).

D.	Minimum Down Payment: Same as Section 203(b), which is 3.5 percent.

E.	Mortgage Term: Same as Section 203(b), which is 15, 20, 25 or 30 year terms.

F.	Mortgage Insurance Premium: Monthly fee of .55% PLUS Upfront MI of 2.25%

G.	Refinancing: Same as Section 203(b).

If the Condominium is not approved then the Lender may go through the “Spot Approval” process. For more information on this approval process, please click here.

If you are considering a Condominium in NC, please call Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058

Could FHA Force Green Homeownership?

Are we going to Force Green Living?

President Obama, and most of the rest of us are thinking Green is Good, and in an Executive Order issued earlier this month, he required that all Federal Agencies must do everything possible to:

“increase energy efficiency; measure, report and reduce their greenhouse gas emissions from direct and indirect activities;… eliminate waste, recycle and prevent pollution…”

No Federal Agency, no Fannie or Freddie have put requirements on homeownership at this point – however it does cause one to pause. How far do we go?

HUD is required to report back to the White House it’s Greenhouse Gas Emmission reduction suggestions by January. Since there is pressure to show large increases in energy efficiency and corresponding decreases in pollution and greenhouse gas emissions… could this move HUD toward imposing “green” standards on federally-assisted programs like FHA?

How else is the Department going to show significant reduction efforts?

I think I’d keep this on the Radar. This could have a HUGE impact on HUD programs, especially FHA single-family and multifamily insurance programs! Think the Minimum Property Standards could be changing??

Lead Paint – move over! We could be requiring additional insulation, solar hot water heaters, upgraded windows!

If you are considering a purchase in Cary or Raleigh, NC and want to talk about being pre-qualified, please call Steve and Eleanor Thorne, 919-649-5058