Finding FHA approved Homes and FHA approved Condos & Town homes In Los Angeles
Once you are qualified for a FHA (Federal Housing Administration) loan you will now have to find properties that meet FHA Guidelines and Restrictions. Pay close attention here because not all Homes qualify for FHA! This is one of the big differences between the FHA Loan Vs Conventional Loan.
Let's go over some of thoseFHA Property Guidelines for property condition.
Property Condition
First Time Home Buyer Los Angeles-Pay special attention to this because many of you are going to be using this loan program! Property condition is of major concern when searching for your new (or new to you) home. Here are some basic ideas to keep in mind when you're looking at the property's condition:
FHA Okay
- Cosmetic Wear & Tear
- Outdated but in generally good condition
Not FHA Okay
- Structural issues
- Foundation Problems
- Non working appliances
- Electrical problems
- No flooring (carpet, tiles etc..)
- Mold issues
Typically speaking, many "Fixer Uppers" don't qualify for FHA. FHA wants to make sure that they loan you on a "quality" home that isn't going to drain your financial reserves and possibly cause you to default on your loan.
Finding FHA approved Condos in Los Angeles (Including Town Homes): HUD provides a list of FHA approved Condo and Town Home Complexes. You can go to their website, input the zip code of the Los Angeles Condo or Townhome Community and you will get a list of FHA Approved Condominiums And FHA Approved Townhomes.
One of the main hang ups here is that you MUST know the name of the HOA (home owners association) or the corporation that owns the complex.
If you have a good agent, they should be doing this work for you!
I frequently tell my clients to strongly consider homes, condos or town homes that are as close to "move in ready" as possible. Homes in better condition stand a better chance of Meeting FHA Property Guidelines. And besides that, Why pull $20K + out of your pocket after you close escrow when you can "finance" the potential "fix-up" cost over the 30 years of your loan by buying a home that's DONE and in good shape!
A final thought for you: No matter what the condition of the home you are going to buy, save yourself a lot of heartache and surprises by getting a home inspection.
In this video clip, Stephen Munson of Munson Realty Southern California Realty goes over what to look for and how to find FHA Approved Properties in Los Angeles.
