The ability to get a spot approval for an FHA loan will help condo buyers and sellers alike.
Few people know about FHA spot approvals, but it’s a resource that can open up many new options for potential condo buyers. If you own a condo or are looking to buy one, this type of approval likely affects you.
The FHA loan was created for people who have bad credit or little money for a down payment. With this loan, people can purchase a house or condo for as little as 3.5% down.
In the past, certain condo complexes were already FHA-approved, and people with FHA loans could only choose from these condos. Many condos were not FHA-approved, however, and this greatly limited the options for potential buyers. The good news is that, as of October, we can do spot approvals for the FHA loan. If you’re interested in a certain complex, you can receive a spot approval and then be able to get a loan for your home. This opens up many more options to choose from when looking for the perfect condo.
This change is beneficial for sellers as well, as it frees up buyers who used to be locked into FHA-approved complexes. It increases demand and can help unsold condos find new owners.
The biggest downside is that the FHA loan does have mortgage insurance tied into it. If you have any questions about mortgage insurance or would like more information about the FHA loan, feel free to reach out to us. We look forward to hearing from you soon.