FHA Loan - realistic?

[BrianB_The_Loan_Professor]

---

@oracles wrote:
Also if i currently have a mortgage from my co-op that i own, do i have to add my HOA and mortgage into my DTI along with the new mortgage of the house i am trying to buy or can i leave it out. It probably depend on situations as to if i am selling my co-op or renting it out. What are the different scenarios as to if it would be counted in my DTI or not. Thanks

---

It would be counted in all situations

however if you have 30% equity in the unit and rent it out you can use 75% of the rental income to offset your DTI

B

[Anonymous]

HI all,

SO it seems we need to go the FHA loan route. We've worked with our loan officer and with my CSs and our % of down, it's the only way we'll be able to get a mortgage. Of course, the FHA loan would be conditional based on approval of the condo.

Now the tricky part of getting the condo "spot' approved. Since the development is not 100% completed yet and won't be done until March, will the condo be approved? or should we give up this dream at this point?

Thanks,

Michelle

Message Edited by poyc on 12-15-2008 01:53 PM

[ShanetheMortgageMan]

Here are the guidelines for an FHA Spot approval.

http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/96-41ml.txt

Key items are:

1.  Condo project needs to be complete

2.  Control of common areas in the project must have been turned over to unit owners association for at least 1 year

3.  90% of units must be sold

4.  At least 51% of the units must be owner occupied

5.  No single entity can own more than 10% of the units (such as the builder buying units from the developer, or an investor who came in and purchased many of them, etc.)

6.  For condominium projects having more than 30 units, no more than 10% of the units may have FHA insured loans at any given time.  Condominium projects consisting of 30 units or less can have up to 20% of the units encumbered by FHA insured mortgages.

[Anonymous]

Thanks Shane. Seems like whenever we take 2 steps forward, we have to step 1 step back....