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New FHA Condo Eligibility Feature
RatePlug now offers FHA approval and eligibility information for all condos and townhomes in the MRED database. RatePlug works with a third party company that specializes in scrubbing HUD data to determine if a condo unit is approved/eligible for FHA financing.
Benefits of FHA Approval
Lower Down Payment FHA loan guidelines require a minimum 3.5% down payment, the lowest down payment available.
Easier Credit Qualifying Credit requirements (FICO scores) are not as strict as is the case with conventional loans.
FHA Loans Are Assumable Any FHA mortgage is fully assumable, which means that the seller of a property that currently has an FHA-insured mortgage can offer the financing and terms to the buyer. Assumability will be a huge benefit to a future seller when interest rates turn higher: not only will the sales price be higher because of the attractive financing, the pool of qualified buyers will be larger due to the lower monthly payment that comes with a lower interest rate.
Streamline Refinance FHA-insured mortgages have a refinance option that requires no appraisal. This option has allowed many homeowners to reduce their monthly payments even when their property was worth less than what was owed, a benefit that would not be possible with any other type of mortgage.
Agent Experience within connectMLS
Searching by FHA Eligibility has been added to the search function in connectMLS
Agents will be able to search for condos/townhomes by FHA status
A new icon has been created for the grid view which will indicate if a specific condo or townhome is FHA approved.
In addition, a link to FHA report is also displayed on each property listing when opened.
The unit exists in an association that is approved for FHA financing. This allows a buyer to use an FHA forward or reverse mortgage to purchase this property.
While the unit exists in an association that is approved for FHA financing, one of the following might make it difficult for the FHA mortgage to fund: • Owner occupancy below 50% • More than half the mortgages in this association are FHA insured
exceeding the cap of FHA mortgages for the project.
• Decertification date within 90 days
The unit is not approved for FHA financing. Information about obtaining FHA approval for the association can be obtained through FHA Pros via a link, email or phone number.
Red Light Icon will not show in Grid view.
ATTACHED SINGLE - FEE SIMPLE PROPERTIES
The unit is not part of an association that requires HUD approval for FHA financing. Buyer may still be able to secure an FHA loan based on their qualifications.
For each Agent who is actively using RatePlug, their participating lender(s) information will also be displayed on the FHA report. Non-RatePlug users will see no lending info.
Example: Subject Line: FHA Loan Eligibility -- <Property Address>
<Agent First Name>,
MRED is bringing a new service to its members. You will now receive FHA Loan Eligibility status for your condominium and townhome listing(s):
• 123 Main St. Unit 34 -- FHA Approved / Eligible Click here for full report • 456 Other St. Unit 789 – FHA Approved / Eligible Click here for full report • 789 Elm St. Unit 76 -- Not FHA Approved Click here for full report • 1011 Oak Blvd. # 35 -- Decert. Date 5/12/15 Click here for full report
If you have any Questions regarding this information or would like to pursue getting a condo association FHA approved, contact FHA Pros at (818) 707-0258.
http://fhaprosllc.net/get-fha-approved
If you would like to opt out of receiving FHA Status information on your listings, Click Here
Link to Relationship Disclosure
As another benefit, Agents will receive an email alert when they list a new condo informing them of the unit’s FHA status.
(Agents can opt of receiving these alerts)
Home Buyer Experience
Buyer facing reports will have link to FHA report.
Where to direct questions:
Technical questions about the RatePlug displays, flyers, lenders, how to enroll, etc, go directly to RatePlug.
www.rateplug.com/mred [email protected]
630-718-4040 Hours 8AM – 5PM CST
Questions about the FHA status, or how to get association approval go directly to FHA PROS.
www.fhaprosllc.net [email protected]
818-707-0258 Hours 11AM – 7PM CST
