FHA SLASHES CONDO APPROVAL REQUIREMENTS BY 15%

Reblogger Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Real Estate Agent with Get Results Team...Just Call (408) 252-8900! CalBRE# 00901962 Lic.1985
https://activerain.com/droplet/4YdS

Were you aware of any of these changes to the FHA condo approval requirements? If not, read these and get familiar. Perhaps some complexes that were outliers due to the lower owner-occupancy ratio may now be within the parameters to work for your FHA home buyers this coming year. Definitely info worth knowing for 2017.

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.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Lending / Financial

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
1,084,490
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale www.TahoeLauraLuxuryHomes.com
Coldwell Banker, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900 - I would have missed this information and the changes that FHA has made with their condo development approval.  Great choice for a re-blog!

Dec 20, 2016 02:20 PM #1
Ambassador
1,780,541
Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900
Get Results Team...Just Call (408) 252-8900! - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Thank you Laura, it's helpful to stay on top of changes.

Dec 20, 2016 09:47 PM #2
Rainmaker
1,744,862
Patricia Feager
DFW FINE PROPERTIES - Southlake, TX
Selling Homes Changing Lives

I discovered these changes a few months ago with the sale of Condo. For my area, it's a moving target to watch because depending on the number of units sold and goes off the market, the numbers can change. I brought this information to my Sellers attention immediately so she wouldn't be surprised. She sold to an FHA buyer successfully. 

Dec 21, 2016 03:16 AM #3
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Ambassador
1,780,541

Michelle Carr-Crowe-Top 1% Diamond Certified Real Estate Team Sells Cupertino San Jose Homes-Just Call 408-252-8900

Family Helping Families Buy & Sell Homes 40+ Years
Subscribe,Sell,Search San Jose Homes for Sale Cupertino Schools
*
*
*
*
Spam prevention

Additional Information