FHA Approved Condos in Chattanooga TN

If you are a first time home buyer, you are probably considering purchasing your new home by securing a FHA mortgage. So if you are looking at Chattanooga condos for sale, you really need to be sure that the condo communities that you are considering are approved by FHA for financing. Although there are other means to obtain a loan, by limiting you search to only FHA approved condos will ensure that when you decide to sell you are not limiting the potential buyers who would consider purchasing your condo.

Current Chattanooga FHA Approved Condos

The best way to ensure that the condo subdivision you are interested in is FHA approved is to contact your lender who will be able to pull up a list of approved properties. Unfortunately this list, while it rarely does, may remove a condo complex from the list. So it is recommended to secure a fresh list from either your lender or real estate agent when you decide to start previewing homes. Most established subdivisions will be eligible for a FHA mortgage and the majority of good builders will ensure that they meet FHA criteria so that their properties are eligible. However it is essential to double check before making an offer so that you can be certain that you will be able to obtain the financing that you desire as some sellers or builders may require you to attempt to obtain other financing such as a conventional mortgage which will require a larger down payment before releasing your earnest deposit in the event the condo is not FHA approved. Restrictions to be eligible for FHA financing include percentage of unit sold, percentage of units rented, the way the condo is deeded, and some association requirements. Do not be deterred from purchasing a condo, because of FHA’s approved condo list as it is meant to protect buyers from making a poor investment and the majority of condos are eligible.

Likewise VA approved condos also has similar restrictions but generally follow FHA guidelines.