Danielle Lazier

Archive for the 'FHA' Category

FHA Home Buying & San Francisco FHA Approved Condos

I haven’t mentioned FHA home loans for San Francisco real estate in a while but after receiving two emails last week from prospective first time home buyers curious about using a FHA loan to buy their first home, I thought it might be a good time for a refresher.

What’s a FHA Home Loan?

FHA is the Federal Housing Authority, under jurisdiction of HUD – Housing & Urban Development. What they do is provide insurance for lenders to give borrowers home loans at reduced down payment and credit score levels.

From HUD’s website:

The Federal Housing Administration, generally known as “FHA”, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934.

They don’t actually lend the money. You go to a regular bank or lender that is approved by the FHA. For example, BofA, Wells Fargo, Guarantee Mortgage, & First Capital Group are local San Francisco home loan options for FHA.

Why Get a FHA Home Loan?

The most common reason a buyer would choose a FHA loan over a conventional mortgage is the lower down payment requirement. You can buy a home with as low as 3.5% down payment vs. the typical 20% down for a conventional loan. Of course, there are great 10% & 15% down payment options from conventional lenders now available. They briefly went away during the financial crisis but are back.

In San Francisco, the real estate market has really picked up. Multiple offers are again commonplace and prices are on the rise. You may feel that the real estate will appreciate faster than your savings account and you want to buy your starter home before you are priced out of the market.

As a new client said to me yesterday, “I’m already paying sky-high San Francisco rents and feel comfortable with the payments. The mortgage payment even with the insurance isn’t going to be much different. And then, I get tax savings, home equity appreciation, and the pride of being a homeowner in this expensive city.”

The other reason you might choose a FHA home loan is because your credit is less than stellar. You still need to qualify – have a job, have some reserves, be able to afford the payments – but you can get away with more blemishes on your record and a lower FICO score.

Another bonus is that FHA allows non-occupant co-borrowers, meaning that you can buy with the help of someone (say Mom or Dad) who is not going to live in the property but in order to qualify, you need to include their income, credit, or money.

What’s the Downside?

First, you will pay FHA mortgage insurance which becomes an added closing cost and monthly payment. FHA is insuring your lender for your lack of a full 20% down payment so, of course, they expect you to pay for it! Keep in mind, that you will have mortgage insurance for any loan with less than 20% down, for example, with one of those cool 10% down loan I mentioned earlier.

Second, there is a maximum loan amount dictated by FHA. In San Francisco, you can borrow up to $729,500 for a single family home and $934,200 for a duplex. Here is a complete list of FHA loan limits for California by County. Your purchase price is the loan amount plus your down payment. As you can imagine, this eliminates a lot of our housing stock. Yet, there are many places you can buy and we have helped dozens of FHA home buyers in recent years.

Third, the property you buy must be FHA-approved. This is easy if you plan to buy a single family home and a bit more challenging for a condo. All single family homes should qualify unless they are really intense fixer-uppers. (Though FHA does have a fix-up loan product.) With condos, it’s a bit trickier. It’s the building’s HOA – Home Owner Association – that must qualify, meaning it’s the building rather than the individual unit. Many newer construction buildings through San Francisco neighborhoods like Mission Dolores, South Beach, South of Market, and more are FHA-approved as are some smaller buildings.

Which Condos are FHA-Approved?

For a quick and dirty peek at currently FHA approved San Francisco condos, check out HUD’s website. But keep in mind, that this list is not all-inclusive. If you align yourself with a FHA savvy lender and Realtor, we can help walk you through the process and your best options.

Happy house hunting!

-DL

Tags: fha

April 2010 – Updated List of San Francisco Condos Approved for FHA Low Down Payment Home Loans

There are now 47 San Francisco condo projects approved for FHA low down payment home loans.

Caution – Not all FHA approved condos in San Francisco are listed. Consult with a FHA home loan expert. For example, Dolores Plaza was just re-approved for FHA home loans but doesn’t yet show up on this list…

Read the rest of this entry »

ABC, it’s as easy as 123. Why you really need to get off your iPad and buy a home in San Francisco – now.

Yes, I am a Realtor so I am biased. Duh. But, honestly, folks. If you have stable employment and some savings (minimal needed for a FHA home purchase), and you’ve been considering the idea of buying your own home in San Francisco or San Mateo County, now really is the time.

Here’s why.

1. Last night during an initial consultation with intelligent, thoughtful first time buyers, I was told, “Listen, Danielle. This is the best time I’ve seen for a buyer in the San Francisco market in a REALLY long time, as in since the 1990s.” Amen, brother.
2. The CA Home Buyer Tax Credit for up to $10,000 signed into law today. Last year, the CA tax credit disappeared months before it was set to expire because of overwhelming home buyer demand.
3. The Federal Home Buyer Tax Credit of up to $8000. Gotta be in escrow by end of April and close escrow by end of June 2010. That’s plenty of time if you’re serious and get started right away.
4. Historically low mortgage interest rates.
5. FHA low down payment financing easier and more available than ever. We’re working with many FHA home buyers and have figured out the kinks…mostly.
6. The San Francisco real estate market appears to have stabilized. I’m not saying prices are headed up anytime soon but most people think we’re pretty much at the bottom of the market. BTW, down turns in the SF housing market seem to occur about every 10-15 YEARS or more. Wanna wait that long for the next one?

Tags: fha, First Time Buyer, home buyer tax credit

Update: 555 Bartlett New Construction Condos Inner Mission San Francisco – FHA Approved for Low Down Payment

Quite update: The new condos at the corner of Mission, Cesar Chavez and Bartlett Streets known as 555 Bartlett are now FHA Approved!

This means you can buy a new condo in the Mission with as little as 3.5% down payment. Add in the fact that we can (most likely) negotiate a credit for closing costs and you’ve got a very good deal on your hands.

For example, right now I have clients buying a condo in San Francisco with a FHA home loan. They are putting down 3.5% of the purchase price as their down payment. There closing costs are about 2-2.5% (FHA home loans have higher closing costs). We negotiated this amount into the sales price so essentially, my clients have zero closing costs. 3.5% down payment to own a really nice 2 bedroom, 2 bath brand-new condo with parking in SF? OPM, baby!

Read more about 555 Bartlett : The Inner Mission’s newest condo project.

FHA Approved Condos San Francisco

Tags: 555 bartlett, FHA approved condos, New Construction

Updated List of FHA-Approved Condos in San Francisco

UPDATE – CHECK OUT THE APRIL 2010 LIST OF SAN FRANCISCO FHA APPROVED CONDOS

Pretty soon, there will be no more so-called spot-approvals for FHA low down payment home loans for SF condo purchases. So, if you want to buy a condo in San Francisco and don’t have 15-20% down payment, you’ll want to know which SF condos are approved for a FHA low down payment home loans.

Here’s an updated List of FHA-Approved Condos in San Francisco:

• 1151 SUTTER STREET CONDOMINIUM
• 4451-4455 MISSION STREET
• SF Blu 631 FOLSOM STREET
• 901 BUSH STREET
• The Garfield 942 MARKET STREET
• ARTERRA
• BAYCREST
• CANDLESTICK COVE
• CANDLESTICK POINT – THE COVE
• CANDLESTICK VIEW CONDOMINIUM
• DIAMOND HEIGHTS VILLAGE
• DIAMOND RIDGE CONDO
• DOLORES PLAZA #1 & #2
• ESPRIT PARK (THE HOMES ON)
• GOLDMINE HILL
• MCALLISTER MEWS CONDOMINIUM  MCALLISTE  SAN FRANCISCO, CA 94115 No  Approved
• MORGAN HEIGHTS
• MOSAICA 601
• MUSEUM PLAZA
• PAGE CONVERSION
• PARKVIEW COMMONS
• PINE STREET
• SUTTER HEIGHTS – TRACT 4083  4083
• SYMPHONY TOWERS,TR# 3645
• THE MONTGOMERY, A CONDOMINIUM
• THE SOMA GRAND – TRACT 3849  SOMAGRAND

Tags: fha, FHA approved condos, hud