In recent years, the Austin-area MLS has seen an increasing number of smaller apartment complexes, fourplexes and duplexes being legally "condo'ed," especially in the Central Austin market. This just means that the development as a whole is now parceled into, and sold as, individual units. The process makes home ownership possible for more people who wouldn't have otherwise been able to afford to buy in pricier areas.
The rub comes when trying to finance these projects in a tight lending environment such as the one we're in now. Lenders are hesitant to make loans here, especially if less than half of the units have sold. So if no lender will underwrite the first 50% of units sold, how do those 50% EVER get sold?
But if the property has four or fewer units, you're in luck. There's a special exception by the FHA to treat these units as single-family homes . . which not only means you could qualify with a 580 credit score, but you can get away with putting only 3.5% down. If you're in a special situation like this, email me for details. I'm here to help!