Thanks to the Federal Housing Administration, aspiring home buyers have the chance to secure mortgages through FHA loans. There are specific guidelines that need to be met for a borrower to qualify for an FHA-approved loan. Alongside its borrower eligibility, the properties chosen should also meet specific guidelines as well for it to be eligible.
Besides the specifics, the FHA has set minimum standards that all eligible properties should have. In general, the home should be safe. It should protect the occupant’s health, safety, and security. Ideally, eligible homes should not have physical deficiencies and conditions that could compromise the occupants’ safety.
Single-family, detached and attached homes, as well as townhouses, can qualify for an FHA loan as long as they meet basic property standards set by the Department of Housing and Urban Development ( HUD). Other property types have special restrictions but all in all, FHA can back up loans for newly-built homes and those that need rehabilitation.
Other than USDA loans, the FHA can back up loans for rural properties. However, acreage limit applies. To be more specific, the FHA will back the first 10 acres and this should include the actual homeOur lenders can answer your questions about FHA loans here.
Manufactured homes are prefabricated housing that is assembled in factories and transported to their locations when purchased. Certain guidelines should be met, though. For starters, the house should be built after June 1976 and should be approved by the Federal Manufactured Home Construction and Safety Standards. Living space should not be less than 400 square feet. The home should be classified as real estate and the land must be owned.
As long as the condominium unit is in an FHA-approved complex, FHA will back loans for it. In fact, their online database makes it easy to determine if the condo is eligible under the FHA. Other than that, the complex must have at least 50% owner occupancy and have at least 90% sales of all of its units. The complex that the unit resides in must not be involved in any legal action at the time of application and their homeowners’ association should have a reserve fund besides the normal operating expenses.