FHA San Diego is trying to help everyone in this mortgage crisis in a
big way certainly. Although FHA is trying to help the buyers, there are
still rules and restrictions for the same. FHA has two major ways for
your buyer to use an FHA loan to buy your property or condo. The first
and also the easiest way is for you to check and see if your Downtown
San Diego property is on the approved FHA list. However, if your project
is on the list, and your demanding price falls within FHA loan limits,
then make sure your realtor is advertising FHA approved. With an FHA
loan, a buyer only has to have as little as 3% down payment and that is
really attractive to the first time property buyers for sure.
the question arises that if your project is not FHA approved, what can
be done about it. Then there is a process called an "FHA Spot Approval."
The rules for a spot approval are a bit complicated for sure, but the
main requirements are that the project needs to be complete at the time
of application. Control of the common areas must have been turned over
to the homeowners for at least a year and this is a mandatory clause.
The HOA or the management company will have to provide proof of
insurance for liability, flood, and hazard as well. For the FHA loan San
Diego to get approved, individual units must be owned eligible for a
leasehold interest. All the owners should have undivided interest in the
common areas and there can be no restrictions on the owner usage, i.e.,
discriminatory practices. Transfer of the title cannot be restrictive
at all. In other words, current owners cannot "approve" any new owners
after the FHA loan San Diego is approved. 90% of the units in the
project should b sold and closed. At least 51% of the entire project
should be owner occupied.
The above list is not the entire list of
requirements certainly, but it gives you an idea why it might be
difficult to obtain a spot approval in a high-rise building, or even a
low-rise for that matter. Many buyers do not have the required time or
patience to have this process unfold. This is also one of the major
reasons the builder may not have obtained FHA San Diego approval in the
beginning of the project. There is a myriad of paperwork, whether in the
beginning or after the project is completed and this take a pretty long
John Stamos is the author of this article and he writes about finance news and other matters. For further detail about fha san diego and fha loan san diego please visit the website.