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FHA Condo Financing
February 24th, 2016 10:12 AM

Barbara's Blog:

HUD is finally easing the FHA condo financing rules.  They will streamline the condominium recertification process and expand its definition of acceptable owner-occupied units to include second homes not owned by investors.  These provisions will expire in one year, when the agency plans to implement a more comprehensive condo rule change.

The current changes should qualify more condo complexes for FHA loans, which in turn, will give more buyers access to FHA low down payment mortgages.  This will be most beneficial to the first-time homeowner and the entry level housing buyer.  Previously, condo sales could not get FHA financing, and buyers were forced to come up with 25 to 30 % down payments. 

Condo financing problems also frustrated the move-up market.  Condo owners who wanted to make the move to single family housing could not sell the existing condo to a buyer who could get financing.  They had to depend more on cash buyers.

Another major benefit for Florida condo owners is the property insurance rule change.  FHA will now accept Citizens Property Insurance Corp. coverage, which is the Florida-owned company who is the largest condo insurer in the state. 

Condominiums may become more attractive to various buyers again thanks to this new financing option.  For those who want a second home, or love to travel frequently, it is a worry-free option of property ownership. 

Written by Barbara Doeringer   

Posted in:Real Estate
Posted by Allen Doeringer on February 24th, 2016 10:12 AMPost a Comment

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