Click here to view original web page at Can’t Find an Affordable FHA-Approved Home? You Have Options
At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own. Americans took out nearly $150 billion in loans backed by the Federal Housing Administration to buy homes in 2018. Nearly 83% of those FHA borrowers were first-time home buyers, according to the Department of Housing and Urban Development.
It’s unsurprising that FHA loans are especially popular with first-time home buyers, due to more lenient credit score and debt-to-income (DTI) requirements. But with scores of buyers searching for affordable entry-level housing, finding a place to call home can be a struggle.
In pricier markets, even the FHA’s 3.5% down payment option might bust your budget. Houses that have a low asking price but “need TLC” may not pass an FHA appraisal. And in highly competitive markets, it can be difficult to make an offer that gives you an edge on other home buyers .
What’s an FHA buyer to do? Here are three options. Priced out? Look at FHA-approved condos
If an FHA-approved single-family house would push your budget past its breaking point, consider making your starter home a condo.
As of October 2019, borrowers can get FHA loans for individual condo units without having to worry about whether the entire complex is FHA approved. John Graff, CEO of Los Angeles-based Ashby & Graff Real Estate, said via email that this change should increase the inventory […]