800 Credit Rating - and can't buy a condo in Las Vegas?

Thanks for the responses, but I don't believe they are accurate. Ballen: Fannie and Freddie have nothing to with the FHA. They are regulated by the Federal Housing Finance Agency. The FHA and it's loans are regulated by HUD. Fannie has their own loans for their properties - Freddie doesn't. Leanne: Collateral (property) is not qualified? I'm looking at $70K condos that sold for $225K in 2006. Why wouldn't they qualify for a conventional loan? If you look into HUD's condo community regulations for FHA loans - you'll see that applying is an exercise in futility. But it would be ludicrous for a buyer to spend months (years?) initiating this process only to end up in another bidding war if successful. Yes, I can get a FHA on a townhouse or home - but I want a condo. BTW - HOA fees on townhouses are comparable to condos and quite higher in many properties.

Thanks abgreco - Yes, as I wrote in my question - I joined HomePath and get their listings daily. No bidding wars? Since HomePath is the only way to finance a condo, the competition is fierce. I'm going to try for a conventional loan because my ability to pay is unique. My loan payments are backed by another gov agency - Social Security. There is no employment with all it's volatility for a lender to consider.

lbennett - thanks for your response. I've looked at 100's of townhouse listings as a last resort and have a pre-approved FHA ready to go. I see you're in Texas - fair to say that the Las Vegas market may be quite different? Regarding the condos I'm looking at - you had to "get in line" to buy them for $$220K in 2006 when they were built. And they are gorgeous. All buyers during that time are now walking on the ceiling. When the banks list them for $55-$70K - they are under contract and sold (cash-investors) within hours. The HOA fees for townhouses here vary - some of the developments have a lot of bells and whistles like condos - gated, security, pools, ect, but there are less units per acre to pay for them. Some are more than condos - most are less. Another factor comes into play that is moving me toward a townhouse. This damn HUD condo lending rule is turning beautiful condo developments into apartment complexes - meaning a higher probability of neighbor trouble and future degradation of the community. My biggest problem has been that townhouses in my price range are in areas I won't live in. It's a mess!

lbennet - Thanks for the advice and interesting story. I'll lookup that condo scam. I've started to look at townhouses. Fannie Mae is the only condo game as they have their own loans. But the HUD condo rules for FHA loans will turn these condo communities into apt. complexes. That presents other issues to consider that effect living there. I'm not sure about how much lower prices will go here. Anything decent is gone as soon as it's listed. My biggest concern about waiting is interest rates - as big trouble is coming SOON. Got $50K? The bank will pay about $40/mo interest. A condo pays $900/mo. That's what's going on here. Looks like Vegas inventory will cleanup fast.