The FHA has recently announced a relaxation in some of its strenuous condominium financing guidelines. Florida condo buyers looking to use a Florida mortgage should pay attention, as FHA financing rules for condos will not stay this relaxed for long.
Among the new temporary rules is a provision that permits FHA mortgage lenders to request spot approvals for condos in buildings that have not been approved for FHA financing. The administration had previously scheduled such spot approvals to cease at the end of the year, but the new deadline is February 2010.
The new FHA condominium guidelines also provide for the following:
Increase the number of units in a development that are permitted to be financed through the FHA from 30 percent to 50 percent. In some cases, the FHA will even make exceptions – allowing up to 100 percent – if condominium buildings meet an additional set of more stringent criteria.
The FHA will also now allow bank-owned condos to be removed from the calculation that requires at least 50 percent of units in a complex to be owner-occupied or sold to owners who plan to live in the units. This is a huge benefit for areas in Florida where condominiums experienced the largest number of foreclosures.
Lastly, these new relaxed FHA guidelines will reduce the now 70 new condo development pre-sale requirement to 30 percent, for loans from conventional lenders.
Though these relaxed FHA condominium guidelines are by no means a collective magic bullet for the housing industry here in Florida, they do provide a little bit of breathing room. As always, if you or a friend of yours is looking to purchase a Florida condominium using an FHA mortgage, please give me a call.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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Very useful post…I have gone through the details in your post and it seems to be quite a good opportunity for condo buyers for a limited period.. am gonna retweet your post to my twitter followers and also have bookmarked the page so that I can pass it on to friends and colleagues who are looking for Florida based condos. Thank you
This is an excellent article that help us to understand the new FHA condominium guidelines. Thank you so much for the article.
This is a fantastic article for the condo buyers cause they can get a clear idea about FHA relaxed guidelines. Your article is a real informative one. Thank you so much for the article.
Really great article, interesting and very informative. Thank you so much for sharing.