FHA SLASHES CONDO APPROVAL REQUIREMENTS BY 15%

Reblogger Jerry Newman
Real Estate Agent with Brown Realty, 210-789-4216,www.JeremiahNewman.com TREC #0492321
http://activerain.com/droplet/4Ygw

For anyone working in the condo market with First Time Home buyers, you know that getting an FHA loan has always been a challenge, but under these new FHA guidelines for condo approval, more buyers will be able to take advantage of this small down payment loan to get that first home. Help spread the word if you sell condos with FHA loan. Stop by and comment on John Lemos's original post too.

Original content by John Lemos NMLS# 613321

FHA Slashes Condo Approval Requirements by 15%

It may be time to take a second look at condo projects that were previously off-limits for FHA loan approval.  Up until now, at least 50% of the units in an existing condo project needed to be owner-occupied in order to qualify for a loan insured by the Federal Housing Administration (FHA).  The reason for this requirement is FHA believes that owners who live in their condo unit tend to be more incentivized to take care of the their units and the overall condo project vs. renters or investors.  However, in response to a new law passed earlier this year, FHA has lowered their owner-occupied requirement on existing condos from 50% to 35% as long as these conditions are met:

  1. Borrowers have to apply for a formal exception;
  2. No more than 10 percent of the total units can be more than 60 days past due on their condo association dues;
  3. The condo association has to show adequate financial reserves for capital expenditures and maintenance (at least 20% of the budget); and,
  4. The condo association has to provide 3 years of financial records.

This is great news for many homebuyers, especially in light of the low housing inventory challenges being faced in today’s market.  Contact me for further info, or if you’d like to take a second look at a condo project that was previously off-limits for FHA financing.

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Location:
Texas Bexar County San Antonio
Tags:
fha loans for condos
new fha rules for condos

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Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Congratulations Jerry on becoming an AR Millionaire!  This is quite a feat. Also, thanks for sharing this re-blog from John Lemos.

Dec 22, 2016 11:26 AM #1
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Jerry Newman
Brown Realty, 210-789-4216,www.JeremiahNewman.com - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Thanks, Sheri Sperry - MCNE® Getting to one Million Points was very nice this time of the year. Glad you liked the reblog for the FHA new guidelines on condos.

Dec 22, 2016 04:58 PM #2
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