FHA Town house loans are made by private FHA Approved mortgage lenders but are insured by the FHA in the case of default. In many cases, these FHA approved borrowers have lower credit score requirements than conventional loan programs. So don’t assume that bad credit, or no credit, will automatically disqualify for for an FHA mortgage.
HOW DO I KNOW IF I’M PURCHASING A TOWNHOUSE AND NOT A CONDO? If you own a town home, you will have a split lot line that follows the interior wall of your unit that meets your neighbor. The outer boundary will be marked similar to a single family home. You can check the legal description, if marked as a lot and block in county records to tell for sure if you own the single unit and you will qualify for an FHA mortgage. Condos on the other hand the line will be around the entire building including your neighbors. With a condo your share the land and the common amenities.
TOWNHOUSE FHA MORTGAGE LENDERS ALLOW MINIMAL DOWN PAYMENT AND CLOSING FEES:
- Down payment only 3.5% of the purchase price.
- Gifts from family or FHA Grants for down payment assistance and closing costs OK!
- Sellers can credit the buyer’s up to 6% of sales price towards buyers costs and pre-paid.
- No reserves or future payments in account required.
- FHA regulated closing costs.
TOWNHOUSE FHA MORTGAGE LENDERS ALLOW EASIER QUALIFYING BECAUSE YOU CAN PURCHASE:
- 12 months after a chapter 13 Bankruptcy FHA mortgage Lender approvals!
- 24 months after a chapter 7 Bankruptcy FHA mortgage Lender approvals!
- 3 years after a Foreclosure FHA mortgage Lender approvals!
- No Credit Score FHA mortgage Lender approvals!
- 580 required for 96.5% financing or 3.5% down payment FHA mortgage Lender approvals.
- 500 required for 90% financing or 10% down payment FHA mortgage Lender approvals.
- Bad Credit with minimum 500 FICO credit score with 10% Down Payment FHA. For FHA mortgage applicants with credit scores between 500 and 579 must make down payments of at least 10% down!
- Read more about FHA Qualifying Qualification Summary – Manual Underwrite – Collections-Judgement’s – Bankruptcy or Foreclosure – Compensating Factors –
TOWNHOUSE FHA MORTGAGE LENDERS ALLOW ALLOW HIGHER DEBT TO INCOME & EASIER JOB QUALIFYING
- FHA allows higher debt ratio’s than any conventional mortgage loan programs.
- Less than two years on the same job is OK!
- Self-employed buyers can also qualify with FHA Mortgage Lenders.
- Read More about Gifts For Down Payment – Documents Checklist – Debt To Income – Student Loans –
ABOUT FHA TOWN HOME APPROVALS – Town homes, from many perspectives are much closer to what you would get when you purchase a single family home, as opposed to a condominium. In a town home you own the land under the home upon which your town home sits. You may have a homeowners association, as with a single family home and you will pay for your own homeowner’s insurance.
In a town home, you will have a split lot line that follows the interior wall of your unit that meets your neighbor. The outer boundary will be marked similar to a single family home. You can check the legal description, if marked as a lot and block in county records to tell for sure if you own the single unit and you will qualify for an FHA mortgage.
