How to Get an HUD/FHA Condominium Unit Purchase Mortgage
What it is
| At a Glance | |
|---|---|
| Loan Type: | Housing |
| Lender: | Government |
| Secured: | Yes |
An HUD/FHA condominium unit purchase mortgage enables borrowers to obtain mortgage financing for a condominium through the United States Department of Housing and Urban Development and the Federal Housing Administration, or FHA. This program is used to provide assistance to current or prospective homeowners to buy a condominium unit in which they will reside. The program is provided by approved lenders through the FHA. The condominium unit purchase mortgage is a 30 year loan, repayable monthly, with no prepayment penalties.
The FHA's mortgage insurance programs help low- and moderate-income families become homeowners by lowering some of the costs of their mortgage loans. FHA mortgage insurance also encourages lenders to make loans to otherwise unworthy borrowers and projects that might not be able to meet conventional underwriting requirements, protecting the lender against loan default on mortgages for properties that meet certain minimum requirements.
Who it's for
Housing costs are always rising and not everybody can afford to get a mortgage to buy the condominium they are looking for. The HUD and FHA condominium unit purchase mortgages provide people who may not be able to own a condominium obtain financing for a mortgage.
What you need to do to apply
In order to obtain an FHA condominium unit purchase mortgage, a borrower must contact several lenders or mortgage brokers and determine which ones originate FHA loans. Each lender sets its own rates and terms. Also, you will need to determine your debt to income ratio in order to determine how much you can spend on a home. Then you will need to get pre-approved for the FHA loan. Then, when you find the condominium you would like to buy, all you must do make an offer.
Apply for an HUD/FHA Condominium Unit Purchase Mortgage
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