It is a common misconception that all homes qualify for all types of financing. Many buyers wanting to utilize a low down payment mortgage to purchase a home look to an FHA loan because of its 3.5% down payment option. Unfortunately, if buyers are looking to purchase a condominium instead of a single family home, their options can be limited to condos that “qualify” for FHA financing. While the guidelines are the same all over the valley, let’s use Tempe as an example of what I mean by limiting your options when buying a condo.
Recently, we looked at the website for the U.S. Department of Housing and Urban Development. You know, HUD, the guys that make the rules for FHA loans. What we found is that, in the entire city of Tempe, only 8 condominium complexes are listed as being “HUD Approved Condominium Projects.” Basically, what that means is, if you are trying to purchase a condo in Tempe, your FHA loan choices are limited to a very small percentage of buildings that have homes for sale. Even if mom and dad are helping with a “parent student home loan” and have golden credit with tons of cash in the bank, HUD says “no can do.” Yes, really.
The list below shows the complexes we saw as being FHA approved as of 4/7/2014. This list does change from time to time so please contact us if you would like an updated copy at any time.
Broadmor Place 22 E Redondo 85282 – 51 units (31: 1 story units 20: 2 story units 6 buildings.) Expires 6/20/2015
Hacienda Del Rio 122 S Hardy 85281 – 64 units Expires 5/30/2014
Harbour Village One 5200 S Lakeshore 85283 – 80 units Expires 12/20/2015
Hudson Trace 2333 E Southern 85282 – 138 units Expires 1/16/2016
Springdale Condominiums 1222 W Baseline 85283 – 114 units Expires 2/14/2016
Tempe Gardens Townhouse 4179 S Mill 85282 – 169 units Expires 6/7/2014
Tempe Urban Living Condominiums 520 S Roosevelt 85281 – 15 units expires 7/9/2014
Villagio condominiums 2401 E Rio Salado 85281 ( multiple addresses, all “should” be approved? ) 742 units Expires 1/9/15
It looks like the 525 Town Lake condos applied in 2013 but were rejected due to missing documents or incomplete package submission
University Ranch Condominiums 905 S Lola Lane 85281 – 112 units rejected due to missing documents or incomplete package submission ( applied 2/14 )
The Vale at 1101 W University 85281 – 50 units applied in 2013 but was rejected due to missing documents or incomplete package submission.
Many single family homes will qualify for FHA financing but there are things that can eliminate them from the equation. For an updated and accurate list of homes for sale in any area, contact The Nick Bastian Team at 602-803-6425. We’ll be happy to help in any way.
The homes below are condominiums in FHA approved complexes.