Home types and loan types—what do you need to know about them?

 

If you have a VA or FHA loan, there are certain requirements that you need to fulfill in order to get the money, such as the condition of the home. As agents, we take note of the condition of the home, looking at things such as peeling paint, torn carpets, broken handrails, and window problems, while walking through a home with a buyer using a VA or FHA loan.

When you’re using an FHA or VA loan instead of a conventional loan, you’ll have limitations on how much you can actually spend. For example, FHA loans have different limitations in El Paso County that are different from Denver County, Arapahoe County, or Pueblo County. Be sure that the type of loan that you want is going to be in alignment with how much you want to spend. Confer with a real estate and mortgage professional for clarity about whether the loan you want is going to work in your favor.

“It is very important to speak with your agent and lender about this before applying for a loan—to make sure that your loan type and home type mesh well together.”

As far as home types, you’re probably aware of the most common: single-family homes, condos, and townhomes. Each of these types differ in a few ways. For single-family homes, you need to make sure that the condition is good. Condos and townhomes, on the other hand, have certain other requirements, like:

  • HOA dues
  • Delinquency dues
  • The number of owners who live there
  • Adequate insurance coverage

This is why it is very important to speak with your agent and lender about this before applying for a loan—to make sure that your loan type and home type mesh well together.

If you have any questions about this or other real estate topics, please feel free to reach out to us. We’d be glad to help.