Posted on: 12th Mar, 2008 08:35 pm
Currently living in an apartment and trying to buy my first condo. The condo is a foreclosure and was denied by FHA lender after the inspection. I now have to convert over to a Conventional loan.
I was barely able to do the FHA loan, will it be easier or harder to obtain a Conventional loan. I had to extend my closing because of this.
Thanks for your feedback!
I was barely able to do the FHA loan, will it be easier or harder to obtain a Conventional loan. I had to extend my closing because of this.
Thanks for your feedback!
Welcome Brisco,
As far as I understand, you haven't taken otu the FHA loan, so there's no question of converting. But yes, now you'll have to look out for conventional loans. Well, FHA loans are no doubt easy to deal with but conventional loans too have a wide range fo options and if you select the right loan, you won't have problems managing it.
I suggest that you go for no-obligation free counseling with the community lenders here at http://www.mortgagefit.com/ . The lenders will be able to tell you which can be your right option after analyzing your financial situation.
As far as I understand, you haven't taken otu the FHA loan, so there's no question of converting. But yes, now you'll have to look out for conventional loans. Well, FHA loans are no doubt easy to deal with but conventional loans too have a wide range fo options and if you select the right loan, you won't have problems managing it.
I suggest that you go for no-obligation free counseling with the community lenders here at http://www.mortgagefit.com/ . The lenders will be able to tell you which can be your right option after analyzing your financial situation.
Hi Brisco,
Adonis has given you sound information.
"will it be easier or harder to obtain a Conventional loan." I think if you have good credit scores then conventional loans are not very much harder to obtain. If can qualify for FHA, you can pay lesser amount as closing costs and down payments compared to conventional loans.
But for conventional loans you will get a huge variety of loan options and range which you will not get in FHA. Conventional loans also does not need upfront mortgage insurance premium.
Best of luck,
Larry
Adonis has given you sound information.
"will it be easier or harder to obtain a Conventional loan." I think if you have good credit scores then conventional loans are not very much harder to obtain. If can qualify for FHA, you can pay lesser amount as closing costs and down payments compared to conventional loans.
But for conventional loans you will get a huge variety of loan options and range which you will not get in FHA. Conventional loans also does not need upfront mortgage insurance premium.
Best of luck,
Larry
Before applying for a conventional, I would question exactly what kept the appraisal from being approved for FHA. Today's FHA appraisals are "as -is - just like a conventional mortgage appraisal.
Was it a matter of value? Or condition? Or maybe it was investor-concentration. Depending on the reason, it is quite possible that the appraisal may not be approved for a conventional loan either.
You have a right to a copy of the appraisal. Ask for it. Review it carefully. Ask your loan officer why it was rejected. Most FHA lenders offer conventional also, so I would question if the lender can switch it.
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Was it a matter of value? Or condition? Or maybe it was investor-concentration. Depending on the reason, it is quite possible that the appraisal may not be approved for a conventional loan either.
You have a right to a copy of the appraisal. Ask for it. Review it carefully. Ask your loan officer why it was rejected. Most FHA lenders offer conventional also, so I would question if the lender can switch it.
[Promotional text deleted as per forum rules. Thanks.]
good suggestions Jack. :)
Unless you have 5% of your own funds and a credit score that meets Conventional Guidelines, you would probably be better off convincing the Seller(s) to fix the inspection flaws. Also FHA will for 1 to 2 unit properties allow borrower that is getting an FHA mortgage to get up to $8,000 for improvement financing. As long as the energy improvements will provide a saving over the cost of the life of the unit, The cost of the improvements that may be eligible for financing as part of the HUD mortgage is either 5 percent of the property's value (not to exceed $8,000) or $4,000 -- whichever is greater. Do your homework!
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If FHA denied and being funded already what happen
Hi Guest,
If FHA denies you the loan, then you won't be able to go for it. You will have to apply for a conventional loan in order to buy a property. However, you need to meet the required criteria of the lender in order to get the conventional mortgage.
Thanks
If FHA denies you the loan, then you won't be able to go for it. You will have to apply for a conventional loan in order to buy a property. However, you need to meet the required criteria of the lender in order to get the conventional mortgage.
Thanks
What happen if the loan already get funded and FHA denies it at a later time. What would happen to the consumer? Would they have to do a convetional loan?
Hi Guest!
Welcome to forums!
If the loan is denied by FHA, the borrower will have to contact a lender to get a conventional loan.
Sussane
Welcome to forums!
If the loan is denied by FHA, the borrower will have to contact a lender to get a conventional loan.
Sussane