Yes, you read that right. For a change, the rules are about to make purchasing a San Francisco condo easier, not harder. As of October 1, 2009, FHA Low Down Payment Options for San Francisco condo purchases will get easier.
This is a moving target but here at SFHotlist, we’re staying on top of the changes so we can best help our home buyers make the right purchase for their SF home.
Need to know:
- 2-3 unit buildings will now qualify. ( It used to be only 4+ unit buildings which severely limited the option of using a FHA loan in SF.)
- Condo conversions will now be eligible.
Frankly, there is too much minutiae in the rules to list here & many condos will not qualify for FHA. San Francisco condos on the FHA pre-approved list like Soma Grand, and coming soon, Esprit Park, remain your best bet.
Suffice is to say that coming soon, more home buyers (more of you) will be able to buy a condo in San Francisco.
In the conventional loan market right now, buyers need 20% down (with the occasional 15% down) to buy a condo. With FHA, you only need 3.5% or more.
This is pretty exciting and will mean more competition ahead as buyers, agents, and mortgage brokers figure this out. Get ahead of the pack. The San Francisco real estate market has begun its come back.
Story from the field: Just this week, a home buyer client of mine wrote a great offer on a Mission Dolores condominium. The condo received 3 offers and sold significantly the over-asking price to an ALL-CASH BUYER. And, we are talking about a $800,000 – $900,000 condo! Wow.