Can I still get a FHA loan?

user4790 · Joined: 12 Jan 2009 Posts: 1 1.90 Dollars($)

Hey all,
I am concerned about my refi that I am about to do. My condo complex is new and only has 83% of the condos sold so far. Under the FHA rules you need 90% sold to qualify. The thing is I will be getting a loan for $69,000 and be bringing a down payment of $131,000 to the table. The home is valued at right around $200,000. I also have great credit and the funds to pay the home off if need be. My question is, can the banks overlook the 90% owned condo rule (per FHA) and approve my loan since I have a loan to value percentage of 35%, and great credit.

Thank You for any help.

The refi is on a $159K loan on a house I paid $200K for in September. I sold my other house so I wanted to put $90K into a refi and do away with this bad 6.125% loan I have. I have locked in a 4.375% 15 year loan at Northwest Federal Credit Union.

One other question, if I did have to go to a conventional loan, are they higher in rates than a normal FHA loan?

Marc

Niicss · Posted: Tue Jan 13, 2009 3:35 am Post subject:

Hi user

I don't think that the banks will overlook the 90% owned condo rule (per FHA). As 83% of the condos sold so far, i don't a FHA refinance is possible. As far as rates for the conventional loans are concerned, they may be a bit higher from the FHA loans.

Thanks.

gmakerley · Posted: Tue Jan 13, 2009 10:46 am Post subject:

conventional loan rates are quite comparable with fha currently. your costs will vary, of course, depending on credit score. conventional loans assess a pricing adjustment if your credit score is less than 740 these days (soon to be 800? i hope not.).

Posted: Tue Jan 13, 2009 12:44 pm Post subject:

Thank you. I droped the FHA loan and went with a conventional loan. I lost the 4.375 rate but got a good 4.75 rate. This upsets me that Fannie Mae would refuse to a approve the loan becuase 90% of the condos were not sold. What crap is that. I am putting down almost 2/3 of the value of the condo in cash. How scared are they banks now a days?

Thanks for any help you all provided.

Marc

Posted: Tue Jan 13, 2009 12:46 pm Post subject:

btw, it was a fannie mae loan, not fha. tons of typos in my last message sorry.

Posted: Wed Jan 14, 2009 2:05 am Post subject:

It is a rule that FHA has and I don't think they will change it for you. You can apply for FHA refinance only when you can sell off 90% of the condos.

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