FHA Eases Condo Requirements, to Help Boost Sales!

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Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“FHA Eases Condo Requirements, to Help Boost Sales!”

 

What welcome news! Over the last few years there have been many restrictions that have prohibited condo sales for so many. It’s about time these decisions were made and many more should be added.  

 

All these restrictions have hurt the value of condominiums in this country. Many of these restrictions have supposedly been put on for the best interest of the consumer. The problem, I have no clue as to what they are trying to protect the consumer from.

 

Many condo owners have wanted to sell their unit and couldn’t, many prospective homeowners wanted to buy these units and couldn’t get financing. Again, how does this help or is in the best interest of the consumer?

 

FHA Eases Condo RequirementsUnfortunately, over restrictions have hurt real estate sales and values in the name of protecting the consumer.

 

 

 

FHA Easing Condo Lending Requirements To Help Boost Condo Sales

 

September 14, 2012 George Gombossy

 

 

 

The Federal Housing Administration is temporarily easing its lending requirements for condominiums, in a bid to help the battered housing market,” The Chicago Tribune is reporting.

 

“It was determined that certain policy adjustments were needed to address current housing market conditions,” the FHA said in a letter to mortgage lenders Thursday.

 

“The key changes, which will stay in place for almost two years, include easing the requirements regarding the number of units in a building that can be delinquent on their association dues. Going forward, no more than 15 percent of a building’s units can be more than 60 days delinquent. The previous rule was 30 days.,” according to the story written by Mary Ellen Podmolik .

 

“Investors may own up to 50 percent of the total units in an existing building or non-gut rehab project so long as at least half of the units have been sold or are under contract to owner-occupants for use as their principal homes. Unoccupied and unsold units owned by a developer will not be considered investor-owned and subject to the requirements unless the condominium is rented or has had a previous occupant.”

 

“The Community Associations Institute, a trade group of community associations, pushed the FHA to revise the rules,” says HousingWire.

 

“It was determined that certain policy adjustments were needed to address current housing market conditions,” the FHA said in the letter.

 

CAI Chief Executive Officer Thomas Skiba said the revisions were needed sooner but is still “excellent news.”

 

“FHA has responded to the critical issues we’ve raised. By doing so, more Americans can obtain FHA-insured mortgages to purchase condominiums,” Skiba said. “This will spark home sales and help tens of thousands of condominium communities begin to recover from the housing slump, and that can only help the national economy.”

 

“This is excellent news for sellers, buyers, condominium communities and the housing market across the country,” said Thomas Skiba, the association’s CEO, said in a statement. “We hoped this would happen a lot sooner, but it’s an important step in the right direction. This will spark home sales and help tens of thousands of condominium communities begin to recover from the housing slump, and that can only help the national economy.”

 

Until Feb. 1, 2010, condo buyers could seek spot approval for FHA-backed mortgages, which require smaller down payments than other mortgage products and thus are considered a good option for first-time homebuyers. But the agency changed its criteria, requiring entire buildings to be certified and based its approval process on a building’s financial viability. Buildings are recertified every two years.

 

That has caused problems for potential buyers and sellers, as condo association’s financial reserves dwindled, homeowners lost their units through short sales and foreclosures, and the number of rentals in buildings rose.

image: graur codrin/freedigitalphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

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Ambassador
1,649,348
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

This is great news for a couple of my listings. . thank you for the heads up. .

Sep 19, 2012 05:44 AM #1
Rainmaker
1,660,361
Dorie Dillard
Coldwell Banker United Realtors - Austin, TX
Realtor-Canyon Creek- NW, Austin TX Homes For Sale

Good morning Joe,

Well this is good news! Thanks for the heads up ...I'm sure there are a few condo owners who are trying to sell that will be thrilled!

Sep 19, 2012 05:47 AM #2
Rainmaker
313,173
Frank Laisch
Stewart Title Company - Tampa, FL
"The Insurance Guy"

Great news Joe, Condo owners have had it rough with their financing. this should help boost the market

Sep 19, 2012 06:18 AM #3
Rainer
149,079
Andrew Capelli
Fidelity National Title - Troy, MI

Joe: This is welcome news, especially for an aging population that is looking for homes (like condos) where they don't have to personally take care of the external maintenance.  Thanks for sharing!

Sep 19, 2012 07:39 AM #4
Ambassador
1,086,230
Debbie Reynolds
Prudential PenFed Realty, "The Real Debbie Reynolds" Your Clarksville Real Estate Professional, 931-920-6730 - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Joe, I was really upset with the new change and now they have backed up which was the smart thing to do.

Sep 19, 2012 08:41 AM #5
Rainmaker
776,094
Jon Kolsky
Kolsky Group/Spellens Realty - Long Beach, CA
REALTOR® Long Beach, CA

Joe~ thanks for the update, sounds like the news is perfect for a lot of people and real estate!

Sep 19, 2012 09:06 AM #6
Rainmaker
1,095,083
Lisa Von Domek
Lisa Von Domek & Associates LLC, Real Estate Broker/Associate with Real Living Real Estate Group www.LisaVon.com - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Joe,

Great news, but we still need big government out of the housing market!

Sep 19, 2012 01:56 PM #7
Rainmaker
572,384
Hella Mitschke Rothwell
(808) 226-1095 or (831) 626-4000
Hawaii & California Real Estate Broker

Joe: Thanks for the information. This will help a lot of condo owners sell.

Sep 19, 2012 05:35 PM #8
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Joe Petrowsky

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