Here is a Quick Tip, if you are ready to try to qualify for one of the many mortgage home loans available for first time home buyers but you are looking more into buying a condo vs. a home in the Santa Maria real estate market, because condo are usually cheaper. The thing is sometimes buying a condo can be tricky for some first time home buyers, because getting financing is not always easy. Some first time home buyers when they start to look to buy something they start taking a more serious look at condos since they are usually a lot cheaper than a home, so the down payment is a lot easier to come up with. Just don’t forget that with condos you will get to pay a homeowners Association fee that can be as little as $100.00 to as much $300.00 here in the Santa Maria area which is added on top of your mortgage payment. For some this can be a real sticking point and when you factor in the over all payment it can be as much as owning a home although due to the price difference a down payment is usually a lot easier to come up with. The HOA payment can also be something that will either qualify you for financing or not since it will be added to your over all debt ratio.
Does Your Condo Qualify for FHA financing?
Because if it does not that means you may have to put down more money. Usually at least 10% down payment vs. 3.5 % down payment, for a FHA loan. So rather than waste your time since you may not have that kind of money to put down just go to this website and find out if that condo complex is on the FHA website. To give you an example on a 100k condo its a lot easier to put down $3,500.00 than it is $10k, and DO REMEMBER THAT THIS IS ONLY THE DOWN PAYMENT NOT THE CLOSING COSTS. Using this example would mean $10,000.00 plus closing costs.
Here is the link to find out if your condo complex may or may not be approved just go to: https://entp.hud.gov/idapp/html/condlook.cfm
Once you are at the website – The Condominiums page allows users to search for FHA-approved condominium projects by location, name, or status. The search can be configured to find specific types of projects through the use of the pull-down menus and entry fields. I would suggest in the STATUS menu (last one) that you click on the pull-down menu and choose ALL. Projects can have their FHA approval withdrawn for various reasons and you will need to know that information.
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