FHA Loosening the Reigns
Recently the news has had stories of how the Federal Housing Administration was loosening the reigns a bit on condo lending and making it easier for the average person to purchase a condo using an FHA mortgage. These changes to how FHA looks at condo’s have been talked about for a good while and at first glance it seems that the condo market is in for a rebound with more buyers being able to get easier financing.
But Wait a Minute…
In reading through the regulations FHA has made it just about impossible for a condo association management group to comply with the new FHA guidelines. FHA is requiring condo associations to have financial reserves of at least 20% of their budget set aside and be able to document these funds in forms that the FHA will mandate. Most condo projects I have ever seen don’t have that much money set aside and would have to drastically raise condo fees to cover that extra burden. Plus the added extra burden on associations to produce documentation that is acceptable to the FHA is just another way of denying easier financing to a condo project.
We Can Help
So while condo financing has gotten better there still is a long road ahead for easier government backed financing for projects. Right now we can get you into a condo with 5% down if you are an owner occupant. That sure beats the 20% minimum down payment from last year!
We’re here to guide you every step of the way, let’s get started!