If the cond's are not on warrantable by FHA likely they are not on Fannie or Freddie list so doing conventional would require a larger down payment than 5%. Are there any retirement communities you could look into or a single family?

Unfortunately, this is a common problem. We have many well qualified borrowers, but the collateral (property) is not qualified. There is a solution. Your Lender can ask to get the Condo approved by FHA. It's a lengthy process, but it can be done. Another alternative would be to consult your Realtor and see if there is a Townhome community that would meet your needs. You might even consider a Single Family Home. The payments can be lower than a Condo because the of the HOA Fees (Homeowners Assoc.).

Simply, no you can not get a conventional loan with 5% down in that price range. You have 2 options.... 1. Buy a single family residence 2. Wait for non-warrantable condo financing to come back.

Thanks for the responses, but I don't believe they are accurate. Ballen: Fannie and Freddie have nothing to with the FHA. They are regulated by the Federal Housing Finance Agency. The FHA and it's loans are regulated by HUD. Fannie has their own loans for their properties - Freddie doesn't. Leanne: Collateral (property) is not qualified? I'm looking at $70K condos that sold for $225K in 2006. Why wouldn't they qualify for a conventional loan? If you look into HUD's condo community regulations for FHA loans - you'll see that applying is an exercise in futility. But it would be ludicrous for a buyer to spend months (years?) initiating this process only to end up in another bidding war if successful. Yes, I can get a FHA on a townhouse or home - but I want a condo. BTW - HOA fees on townhouses are comparable to condos and quite higher in many properties.

Have you tried seeing if your loan officer can get you pre-approved under HomePath? You'd be able to do as little as 3% down if you'd like and there are no bidding wars. Owner occupied purchasers get priority. www.HomePath.com is where you and your realtor can view Fannie Mae inventory. There are plenty of great townhomes and single family homes in your price range. LMK if I can help. 702-326-7866 Aundrea

Thanks abgreco - Yes, as I wrote in my question - I joined HomePath and get their listings daily. No bidding wars? Since HomePath is the only way to finance a condo, the competition is fierce. I'm going to try for a conventional loan because my ability to pay is unique. My loan payments are backed by another gov agency - Social Security. There is no employment with all it's volatility for a lender to consider.

Condo's, if you own one you can't sell it, and if you want one you can't get a loan. This has been an on going problem since the mid 80's and comes as no shock to those of us in the business. It was suggested to you once before, and I'll back up that suggestion to you agian. Look at getting a Townhouse if you want to live the multifamily lifestyle because the guidelines are the same as single family property. You are incorrect in your statement about the cost of townhome HOA's as they are only assessed for community up keep (pool cleaning, lawn maintenance in public area's, retaining wall repairs, insurance to cover injury in public areas) I know this because I own 6 as investment properties. On a condo, your HOA covers all the above PLUS any assessed repairs needed to the entire complex (roofs, foundations, pool, streets, sidewalks, etc.) Years ago, I owned a condo and the entire complex needed new roofing. It was over $500K for the project and my HOA went from $250 per month to $580 for a three year period to cover the costs. When it was announced that the complex was seeking bids for foundation work needed is when I sold my unit. In a townhome, you only cover the cost of repairs to your unit. All other outside repairs are paid from a general fund account, so no funds, no repairs or inprovements. Good luck in whatever it is you do.

lbennett - thanks for your response. I've looked at 100's of townhouse listings as a last resort and have a pre-approved FHA ready to go. I see you're in Texas - fair to say that the Las Vegas market may be quite different? Regarding the condos I'm looking at - you had to "get in line" to buy them for $$220K in 2006 when they were built. And they are gorgeous. All buyers during that time are now walking on the ceiling. When the banks list them for $55-$70K - they are under contract and sold (cash-investors) within hours. The HOA fees for townhouses here vary - some of the developments have a lot of bells and whistles like condos - gated, security, pools, ect, but there are less units per acre to pay for them. Some are more than condos - most are less. Another factor comes into play that is moving me toward a townhouse. This damn HUD condo lending rule is turning beautiful condo developments into apartment complexes - meaning a higher probability of neighbor trouble and future degradation of the community. My biggest problem has been that townhouses in my price range are in areas I won't live in. It's a mess!

You are correct, Vegas property values are still circling the drain right now and continue depreciating at about 6 -8% this year alone. It may be too soon for you to jump into buying something right now due to the fact there is still about 2.5 million properties still expected to hit the market over the next several years. I was in Vegas back in 06, and actually had a buddy buy a condo and then turn around and sell it for a huge profit before the thing was even built,..crazy! In the late 80's we had a huge condo scam here in the Dallas area that was manifested during the Savings & Loan days. Most of them were run by crooks, and we saw $150K properties drop to 30-40K once the sh$t hit the fan. Google I30 condo scam, it makes for good reading. I understand what you're saying about the HUD restrictions on Condo's. This has always been a major issue with these type of properties. I actually had a deal fall through once, not because of the HUD issue, but because the MI company wouldn't cover the loan because they didn't like the property. I hate dealing with condo loans because they only end up aggravating all involved. Well, it sounds like you are fighting an uphill battle, and unless you find something that has someone willing to owner finance the property, you may be out of luck for now. I wish you luck.

lbennet - Thanks for the advice and interesting story. I'll lookup that condo scam. I've started to look at townhouses. Fannie Mae is the only condo game as they have their own loans. But the HUD condo rules for FHA loans will turn these condo communities into apt. complexes. That presents other issues to consider that effect living there. I'm not sure about how much lower prices will go here. Anything decent is gone as soon as it's listed. My biggest concern about waiting is interest rates - as big trouble is coming SOON. Got $50K? The bank will pay about $40/mo interest. A condo pays $900/mo. That's what's going on here. Looks like Vegas inventory will cleanup fast.

A condo project does not need to be on Fannie Maes approved list to get a conventional loan on it. Your lrnder can get a spot approval as long as the complex meets the requirements (owner occupied percentage, nunber of units delinquent on HOA fees etc.) It is not hard to get a spot approval and usually only requires a HOA cert. We do it all the time on condo loans here in the Phoenix area.