HUD is (finally) easing up on FHA Condo Financing Rules
Posted 01-13-2016 at 09:17 PM by Sunshine Rules
The SW FL real estate crash back in 2007 - 2011 saw a large number of condo owners, who'd bought at the height of the real estate boom years, doing either short sales or allowing their condo units to go back to the lenders. This created a hardship for many condo associations, since these owners were no longer paying their monthly or quarterly assessments.
As a result of the fallout, condo financing rules were tightened up considerably. Buyers could no longer qualify for 100% financing. FHA approved condo communities became scarce. For several years most buyers who bought condos paid cash.
Awhile back lenders started easing up somewhat. Limited review conventional loans became the "go to" loan type for condo purchasers. but these loans require a minimum down payment of 20%, sometimes as high as 35% down.
It was announced recently that HUD is making some changes to the condo certification requirements for qualifying for FHA financing.
One of the major benefits for FL condo buyers is that FHA will now accept Citizens insurance coverage under the changed guidelines. Citizens happens to be the largest condo insurer in FL.
These changes will expire after one year, but FHA has announced they are working on permanent changes to their condo certification rules that will make it easier for more condo communities to qualify as FHA approved.
You can find out if a condo community you are looking at currently qualifies for FHA financing by going to the HUD website here:
https://entp.hud.gov/idapp/html/condlook.cfm
As a result of the fallout, condo financing rules were tightened up considerably. Buyers could no longer qualify for 100% financing. FHA approved condo communities became scarce. For several years most buyers who bought condos paid cash.
Awhile back lenders started easing up somewhat. Limited review conventional loans became the "go to" loan type for condo purchasers. but these loans require a minimum down payment of 20%, sometimes as high as 35% down.
It was announced recently that HUD is making some changes to the condo certification requirements for qualifying for FHA financing.
One of the major benefits for FL condo buyers is that FHA will now accept Citizens insurance coverage under the changed guidelines. Citizens happens to be the largest condo insurer in FL.
These changes will expire after one year, but FHA has announced they are working on permanent changes to their condo certification rules that will make it easier for more condo communities to qualify as FHA approved.
You can find out if a condo community you are looking at currently qualifies for FHA financing by going to the HUD website here:
https://entp.hud.gov/idapp/html/condlook.cfm
