The Basics Of Buying A Condo With An FHA Loan
Over the course of the last few years, the Federal Housing Administration has made several changes to the loan approval process, especially in regards to purchasing condominiums. Finding an FHA loan consultant in Minneapolis MN to help you wade through the details and legwork involved in the condo buying process will be that much easier if you’re at least somewhat familiar with the framework before embarking on the sometimes complicated journey yourself.
As a would-be condo purchaser planning on seeking out an FHA loan, your best bet is to begin your search for your new home on the FHA-approved condominium list. As the name implies, this is a listing of condos that has already been approved by the Federal Housing Administration–making the rest of the process that much easier. Your realtor should be able to provide you with access to this FHA-approved condo list, which will make getting financing that much easier and straightforward, depending on your own financial health and situation.
Of course, that’s not to say that if the condo of your dreams isn’t currently on the approved FHA list it’s impossible to get it there and make it yours. All it takes is a willingness to put in the extra effort and a lender that will work with you to complete one of the approved processes.
Through the HRAP–that is, the HUD Review and Approval Process–your lender can submit all of the necessary paperwork to place your desired property on the FHA list. Unfortunately, this process can take 4-8 weeks, which can be frustrating for those looking to move relatively quickly, or those living in hotter markets where properties aren’t likely to stick around for that long.
Alternatively, for a quicker option, you may be able to find a lender with what is known as unconditional Direct Endorsement Authority, which means that they have the experience, staff, and expertise to be able to review condo projects themselves. This route is known as the Direct Endorsement Lender Review and Approval Process, or DELRAP. There’s a long and involved list of project eligibility requirements for getting a condo onto the FHA loan list, so finding a lender with Direct Endorsement Authority is an essential component to moving your project along if you’d like to get your condo on the list with any semblance of speed.