Since more home buyers are struggling tofind home loans in Cincinnati many are opting for FHA and VA loans and here a few key points to remember:
FHA
Termite inspection not required unless appraiser requires it
Mortgage Insurance cannot be dropped until after 5 years-irregardless of equity/value increases
Property must be owner occupied
The entire amount of down payment and closing costs can be a gift
Seller can legally pay up to 6% in closing costs, prepaids and points
Minimum credit score requirement is 620
Well and septic inspections are always required
FHA must grant a waiver for cisterns
Last but not least…even if the condo shows approved on the FHA Approved Condo site, the condo complex must pass a “5 Question Checklist” to remain approved. Email or call if you need the list of questions.
VA
Buyers using VA cannot pay the following fees: Broker Service/Admin Fee, wire and courrier fee, realease fee, commission, attorney’s fees and termite/wood eating bug inpections.
Termite is always required and must be paid by seller
Condos have to be VA approved. Approval averages 45-60 days
Owner occupied only
VA funding fee can be financed -closing fees cannot
Seller can legally pay up to 6% in closing costs, prepaids and points
Today’s real estate market is proving to be challenging when trying to obtain a VA loan qualification, FHA loans for condos and having complexes meet the VA or FHA condo requirements. So buyers looking to take advantage of FHA or VA loans need to get their ducks lined up before they begin the process of looking for a home or condo in Finneytown, West Chester, Fairfield or anywhere in greater Cincinnati.
If you want to start house hunting, need mortgage information or need to find a great lender- call or email.