Eye on the Market
Eye on the Market: FHA Loosens Regulations
This is a big deal if you're trying to purchase a condo with an FHA loan.
Many buyers use FHA loans to purchase their homes due to the low down payment (3.5%). However, not all types of residential property were available for FHA loans. Many folks, especially empty nesters, no longer want the huge house and big yards. They would prefer a condo type community. Until now, the entire building would have to be certified by FHA, meeting their standards. This was problematic for folks who wanted to buy and sell because it eliminated an entire part of the lending community. FHA will now allow consumers to get an FHA condo loan if less than 15% of the dues are less than 60 days late. Previous to this it had been 30 days. Also, condo boards are now less liable to FHA violations. Congress also voted to strengthen FHA. It…
