FHA Loans May Require Longer Waits in Shadow of Changes

FHA Loans May Require Longer Waits in Shadow of Changes

Recently FHA made some changes to it's multi family underwritting standards, changes that will effect your ability to finance a multi-family project. Those in line of construction or refinancing will see lowered leverage levels, an increase in debt service requirements, as well as an increase in reserve requirements. These changes are going to mean an increase of scrutinization of the documents by lenders, as well as an increase of required docs. In general the process is going to take longer to get through as everything is going to take more time to analize.

These changes are going to require more staff burden, this with an already sorely understaffed department, will gaurantee things are going to move at a snails pace. However, that is the intent, and FHA is upfront about it, they want to clear out their pipeline market rate loan deals, a move which is intended to in the end make the process more effcient.

Keep in mind I am talking about how FHA deals with multi family loans, not single-family. All these changes are going to mean an increase demand in staff, a demand increase for training, as well as an increase in demands for upgraded technology.

It will take some time to see if this move works out with the intended results, hopefully we are looking at short term pain for a long term gain.

If you are looking for commercial property or a single family home in the Gettysburg Adams County Pa area, feel free to contact GettysburgGerry for assistance.