Types Of Real Estate FHA Insures

The FHA or Federal Housing Administration insures the financing of real estate properties even up to four units provided they will be used as primary residence. Among the different types of real estate properties that FHA insures are the single-family homes, row houses or condominiums, duplex, triplex and fourplex and manufactured homes.

1. Single Family Residences – For FHA to insure these types of homes, it must be a personal residence and not as an investment property. A single family residence is a detached or a stand-alone unit that could be attached to another building. These types of homes are composed of units attached together, but are divided by a common wall that does not allow access to the other units. Examples of a single family home, as FHA defines, are condominiums, town homes or manufactured houses.

3. Condominiums and Town homes – Another type of property that can qualify for an FHA insured mortgage is a condominium unit, town home or row house that belongs to an FHA-approved condominium project. Take note that not all condos can be FHA-insured. When purchasing Baltimore Condos, the entire condominium projects must meet FHA criteria – No more than 25 percent commercial space, no more than 10 percent of the units may be owned by one investor, the condo must have at least 50 percent of the units in the complex must be owner-occupied, and more.

4. Manufactured Homes – Just like that of condos or row houses, manufactured homes must meet the FHA criteria like owning the land under the manufactured home. However, manufactured homes built before 1976 are not qualified for an FHA mortgage loan. According to HUD, mobile homes or certain manufactured housing units can qualify for FHA insurance given that the manufactured housing unit is on a permanent foundation. Thus, FHA insures permanently affixed manufactured homes as single family homes.

FHA or Federal Housing Administration insurance has helped qualified borrowers obtain affordable home mortgages. Since its creation in 1934, it has played a very important role in insuring loans of millions of properties and has helped in the stabilization of the housing market during the past years.

Want to buy a house from Denver Colorado HUD Homes? Do your homework first and speak directly with your lenders to determine the best mortgage option for your Crosby TX foreclosures to help you clarify matters on loan amounts and mortgage pre qualification requirements.