If you are planning to finance your San Diego condo purchase with an FHA loan, you should already be aware that the complex you buy in must be specially approved by HUD (U.S. Department of Housing and Urban Development). How do you find a list of FHA or HUD approved condos and complexes in San Diego? The easiest way to do this is to visit HUD's website and search for complexes that are already on the "approved list." Keep in mind that the list is constantly changing, so you should check for updates often. Many San Diego condo complexes that were once approved by HUD have lost their approval due to expiration or other reasons, and many condo complexes are currently in the process of applying for HUD approval. Your San Diego exclusive buyer agent should be helping you with this and saving you valuable time as you search for potential condos to purchase.

Why does the condo have to be HUD-approved to qualify for an FHA loan? Buying a condo carries higher potential risk for your lender than buying a house. Many lenders charge a higher interest rate when you buy a condo than when you buy a house because of the added risk. Since you currently only have to pay a 3.5% minimum down payment for an FHA loan, FHA is trying to lower its risk by limiting you to complexes it feels are stronger/better investments than the others.

Here is the link to the HUD website for searching for approved condo complexes: https://entp.hud.gov/idapp/html/condlook.cfm.

See Also: HUD Recommends Home Buyers Hire an Exclusive Buyer Agent

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Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."

Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.

If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or  E-mail.

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