So basically what has happened is my loan officer has dropped the ball, and just found out two weeks into my contract period that a condo I have a contract on is not an FHA approved condo. Now he is saying that we have to go through HUD to get it FHA approved and that could take anywhere from 3-6 weeks depending on when the government gets around to approving it. My close date is set for 11/9. My question is: Does anyone know of a lender that has unconditional Direct Endorsement authority from HUD? Apparently if I could find a lender that did do this, I could skip having to wait on HUD to approve it, and they could approve it in house. This would enable me to go back to the sellers and let them know how much I need to push back the close date as opposed to not having any clue when HUD will get around to approving it. Any advice would be greatly appreciated....
Not an answer to your question, but why not switch and go conventional? PMI rates on FHA loans are ridiculous, plus that wipes out the need to get HUD involved.
why not do a Fannie loan and a HELOC to cover whatever you need to get to that 20% down amount? then you don't have to worry about FHA approval.
I've been looking into this today. It's not looking good thus far, but I'll keep you updated once I learn more.
I don't understand what the benefit of FHA vs Conventional is unless you have bad credit. The minimum downpayment for FHA is what? 3.something %? ...and Conventional is 5% People think you have to put 20% down for conventional but that is not the case. And as someone already mentioned the mortgage insurance on FHA is a lot higher than conventional if you're putting down less than 20% on either one. So whats the benefit? I was told that an FHA loan is assumable down the line if you decide to sell...but thats not a big deal.
The lender I work for has the authority to directly endorse condo's for HUD approval. I just got back word on this. If you'd like me to get you in touch with somebody who could potentially help you out with this, send me your e-mail address and I'll contact you for further information and details.
You are correct...3.5% FHA and 5% Conventional. I'm getting a home loan right now and mistakenly requested an FHA on the application. When I got the quote back and saw the PMI, it made me dig into to find out WTH. Saw the mistake and corrected it, got re-approved going conventional, and it dropped our monthly significantly.
Same thing here. We are dealing with a home loan. I did not know anything about FHA or Conventional prior to this. One lender recommended conventional another recommended FHA but when we looked at the monthly payments the FHA was about $100 more than conventional because of the stupid mortgage insurance. So if you have decent credit and can put down at least 5% I would not go with FHA unless you are planning on selling the property in 5-6 years in which case the buyer can assume your loan at the % rate that you got it for today which would be an incentive for the buyer if the interest rates go up in 5 years.
Any word on this? I haven't heard from you. I've got some of our better LO's lined up to help you out. They're just awaiting contact information.
I think the wording on FHA loans (at least in the past) is "loan MAY be assumable". Of course, that is better than loan IS NOT assumable, but no guarantee.
