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Skip Navigation Links : Loan Programs : FHA Loans : Condominium (234c)
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What is a FHA Loan

Many first time home buyer's ask "What is an FHA Loan?" without ever getting a clear concise answer, we'll give that to you here - more

2009 Home Buyer
Tax Credit

Part of the stimulus package of 2009 includes the homebuyer tax credit. This credit is intended to help buyers with a credit to be applied on - more

Zero Down Loan's

In numerous housing markets across the nation, the increase in housing prices doesn't match the areas average household - more

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The Foreclosure process is different in all 50 states. If you are having a hard time making your - more

Closing Costs FAQ's

With a long list of charges at settlement, it's important to know what to expect. The Real Estate Settlement Procedures Act (RESPA) requires your - more

FHA Condominium Program
Section 234(c)

Section 234(c) provides FHA insurance to borrowers who purchase a unit in a condominium building.

Section 234(c) features:

  • The condominium building must contain at least four dwelling units and can be detached or semidetached, a rowhouse, a walk-up, or an elevator structure
  • If the apartment is in a building that was converted from rental housing, no insurance may be provided unless the conversion occurred more than one year before the application for insurance, the potential buyer or co-buyer was a tenant of that rental housing or the conversion of the property is sponsored by a tenant's organization that represents a majority of the households in the project.
  • Eighty percent of FHA-insured mortgages in the project must be made to owner-occupants.
  • Many closing costs can be financed into your FHA mortgage loan.  With most conventional mortgages, the borrower must pay, at the time of closing, costs equivalent to 2-3 percent of the price of the mortgage loan.  By allowing the borrower to finance many of these charges,  the borrowers upfront costs are reduced significantly when buying a home.
  • FHA rules put limits on some of the fees charged by your lenders.  For example,  the mortgage origination fee charged by the lender may not exceed 1 percent of the amount of the mortgage and the tax service fee is not allowed.
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