Starting late last year and until this week condo buyers had to put a minimum of 10% down unless they bought an FHA approved condo. Condo mortgages requiring only a 5% down payment with no FHA restrictions are now available for well qualified condo buyers!
According to Baird & Warner Financial Services Loan Consultant, Michael Polera, “As of March 15th Radian Group Inc. one of the nation’s major credit risk management companies has decided to venture back into insuring low down payment condominium loans. Initially mortgage insurance for 95% condo loans will be available for only very well qualified buyers. The underwriting guidelines are conservative, requiring low debt to income ratios, high credit scores and cash reserves after closing. Also, newly constructed buildings and conversion projects will have to meet certain guidelines.”
Not only does this make buying a condo a possibility for more well qualified buyers, it gives them more choices since the condos don’t need to be FHA approved. This is also good news for sellers with condos that aren’t FHA approved since it increases the pool of potential buyers.
If you want to buy a condo and have good credit, but have been stopped by the 10% down payment requirement or FHA restrictions, contact me for more information on these new mortgages.