Have you heard about the changes in the FHA Financing guidelines? These changes should make it easier for buyers, especially first time buyers, to purchase a home. Read on to learn how these changes may affect you.
Obtaining FHA certification is a big task for a condo association. There’s a cost to the association involved, in addition to a mound of paperwork. Not surprisingly, many condos choose not to go through the process. New guidelines extend the certification from 2 years to 3 years. This should ease the burden on the associations to remain FHA certified.
Years ago, if a condo complex wasn’t FHA Approved, “spot approvals” for an individual unit were allowed. This allowed for FHA financing, even though the complex was not FHA approved. This process was discontinued, however, it has bee reinstated. This will allow more buyers to take advantage of FHA financing in condo communities which are not FHA approved.
Investors to Owner Occupants
As a by-product of the housing shortage, many investors are purchasing homes in condo complexes. And they are making these homes rental units. Many condo complexes were denied FHA Financing approval because the ratio of investors to owner occupied units was too high. The recent changes allow for additional flexibility in the ratio of investors to owner-occupants to allow condo complexes to obtain FHA financing approval.
Although there are other mortgage programs which allow qualified borrowers to purchase homes with down down payments, FHA financing is a better option for many buyers. These changes will allow more buyers to begin taking steps to achieve the American Dream.
When you’re ready to begin the road to the American Dream, call us. Call Bunny and Art Reiman – Realtors. We’ve helped hundreds of families purchase or sell homes in the Freehold area, and many were first time buyers. We would like to help you also.
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