A buyer recently inquired about a condo listed in Upper Montclair asking if the complex is FHA approved. Unfortunately for her it is not but it raises an interesting question for those folks who are looking to take advantage of the first time home buyer tax credit and may not have the traditional down payment. The answer is an FHA mortgage which will allow for a purchaser to put as little as 3 1/2 % down. New Jersey also has a program that allows for the first time buyer to use the tax credit as a down payment on and FHA insured mortgage. For the buyer going this route the challenge is to determine whether or not the condo/townhouse complex is FHA approved. For your convenience this link will allow you to search the HUD database for approved condos. It may be a good idea to start with a list of towns you would consider living in before starting your search. See below for a list of approved Montclair complexes.
In Montclair the following complexes are FHA approved:
- The Bellaire House
- The Seina
- Montclair Mews
- The Dorchester
-
Fullerton Condos
Please note that co-ops are not eligible so the the units at Rockcliffe are out. If you have a questions about a specific property please feel free to contact us (973) 464-0568 and we will assist in you in getting an answer.
*Update - In the past a FHA condo buyer was able purchase in a complex that was not FHA approved if a spot approval was granted. This is no longer the case as of the beginning of February 2010 when the spot approval process was been eliminated. This will limit the options for some buyers and require a certain strategy. For specific questions regarding your situation please contact us and we will be happy to guide you in the right direction.
