Shopping Around for an FHA Condo Loan
But the reality is that there are many types of condos and many different types of condo loans to buy them with. FHA mortgage loans for condo units have an advantage over some conventional loans because the FHA does not permit any restrictions on how you own or sell your property--that means that FHA loans can only be approved when condo owner association bylaws don’t require the “right of first refusal” and other restrictive covenants.
But that is all “FHA loans 101” information. What ELSE should you know about buying a condo with an FHA mortgage? Not all lenders are alike, and you’ll want to consider asking a few pertinent questions before you commit to a participating lender.
Mortgage Rate Locks
Some lenders offer 24/7 mortgage rate lock options. That may not be a feature you think about going into the process, but some borrowers may be applying from out of state or even out of the country. When you are ready to commit to your rate lock, how simple is it to get done?
Interest Rate Quotes
Does your lender offer transparency about mortgage loan interest rates on its official site? Or does the lender make you fill out a form and wait to be contacted? This might not be a deal-breaker for some but others prefer to have easy access to rates (even estimated ones) to get an idea of what to expect.
Just because the lender isn’t as transparent about providing the rates online doesn’t mean they are shady but in terms of overall user experience, some will gravitate toward lenders who are more up-front about rates and terms.
Does The Lender Offer Loans In Your State?
Believe it or not, some mortgage lending operations are only licensed in some states but not all--requirements for certain states are more stringent and it can take more time to get approved to underwrite loans in those areas. Make sure your chosen bank, credit union, or non-bank lender is licensed in your housing market.
Does your chosen FHA lender feature an all-online application process? Some prefer it, while others much prefer working with a live human instead. Other borrowers may appreciate the option to talk to a person while doing most of the applying on their computer. Knowing how the lender’s process works may help you decide whether or not to use them.
Learn How to Meet FHA Requirements
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Your Proof of Ownership Is the Property Title
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