We had a FHA loan training today. The speaker is a Joe from the guaranteed rate and he is a great speaker. So who is qualify for the FHA loan, residence only, if people has previous short sale and foreclosure, they need to wait three years after that deal is settled. For people who wants to buy a new place and already own a place, they need to prove 12 months rent. Also, most of the FHA loans are for single family and 1-4 units building only. You can find lots of good infomation on www.hud.gov.
FHA loan is pricey compare to the conventional loan as not only you have to pay the PMI, you also have to pay a 1.75% of the purchase price MIP which is ensure the loan is in good nature. So if you have 20% down, the better choice is conventional loan. There are still very small amount of condo buildings are approved for FHA loan. The percentage of units in a condo building to get FHA loan is less than 30%. The FHA spot approval is going to go away in Oct, that means there are more buildings are FHA approved. I am not sure if this is good, although FHA loan are not easy to get, but it does has the minimum 3.5% down payment, plus, you can use gift for the down payment, is this going to be a bad thing in the future?
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