Financing a condo with FHA financing in today’s San Mateo County real estate market is getting more difficult. With FHA lenders tightening their guidelines, borrowers are required to jump through more hoops to buy a condo in San Mateo County. Not only must the borrower be pre-approved and qualified to the lender’s satisfaction, but the complex will be scrutinized as well. Lenders want to make sure the complex is financially sound and has the reserves to make any necessary repairs and do any required maintenance. With the rash of foreclosures in the market, lenders want to make sure they have sufficient collateral to offset their investment.
Which Questions Should Be Asked when Buying a San Mateo County Condo?
We suggest to the San Mateo County Realtors and clients we work with ask the following 9 questions early in the home buying process to avoid any unexpected surprises along the way.
- Is the complex FHA approved? You can find out by entering the complex information into HUD’s form. If it is not FHA approved, it doesn’t mean you won’t get the loan. It does require a “spot approval” which requires some extra time.
- What has sold in the complex recently? How does it compare to this unit? San Mateo County appraisals are now more thoroughly reviewed and may require two independent reviews.
- Is the complex in a flood zone?
- Have there been any special assessments in the last three years?
- Are there major maintenance or improvement projects anticipated in the next 12 months?
- Are there sufficient reserves to cover those expenses?
- Is the HOA involved in any lawsuits?
- Are at least 85% of the units current on their HOA dues?
- Are the buyers aware that “walls-in” insurance is now required by all lenders in addition to the policy the HOA should have on the structure?
Why Ask Why?
These are the same questions the lender will ask, so why not be proactive and learn the answers before too much time, energy, effort and even money is invested in the transaction? Red flags are best addressed from the get go. If ultimately the lender will not make you the loan, why even make an offer? Why not spend the time finding a property that will be approved?
Considering a San Mateo County Condo?
If you are considering purchasing a condo in San Mateo County, contact me today for a free, no obligation consultation. We’ll go over what you can afford and help you put your financial house in order. We can even recommend several great Realtors we’ve worked with that will do a great job finding you a San Mateo County home.
Other Posts You May Enjoy
- Mortgage Myth Busted: I Don’t Have 20% to Put Down So I Can’t Buy Now
- Mortgage Myth Busted: I Must Have Steller Credit to Buy a Home
- Why It is Imperative to Get a Pre-Approval Before Submitting an Offer
- How Mortgage Interest Rates Affect Your Monthly Payment
- What Can I Afford with FHA?
Enjoyed this Post? Why Not Subscribe?
If you have enjoyed San Mateo Mortgage Blog, please subscribe to our RSS feed.
Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
Related posts:
- Using FHA Financing to Finance a San Mateo Condo? Get Your Lender Involved Early
- Webinar: Financing a Condo in San Mateo
- Temporary Changes to Financing a Condo with an FHA Loan
- Class – Guide to Buying Condos with New Financing Rules
- Consider this Before Determining Whether an FHA Loan is Right for the Bay Area Borrower
