Have you experienced the crunch on condos? First, if the HOA is 15% or more deliquent, or over 51% owner occupied, no FHA loan. Now, new rules - only 30% of the building can be FHA encumbered.
There are several developments that have had a number of foreclosures, that the HOA is way over 15% deliquent, and now there can be no loans on the property! There are supposed to be FHA spot approvals, but with this deliquency rate, the approval is likely not to be given.
Recently, my lender said they ARE NOT doing loans on condos at all. If the property has a lot/block description, they will - but not condos. This really makes me feel uncomfortable putting a first time homebuyer into a condo they may never be able to sell again.
Something has to happen for our first time homebuyers! Not just the $8000 credit, they need a place to start that is affordable!
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