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Monday, September 17, 2012

FHA Temporarily Eases Guidance on Condo Approvals

According to a letter sent to lenders on Thursday, the FHA eased some requirements for financing the purchase of condominium units until August of 2014.

There is a new rule that will be put into place.

New Rule: No more than 15% of the total units can be delinquent by 60 days or more on their condo association fees. 

Old Rule: No more than 15% of total units can be delinquent by 30 days or more on their condo association fees. 


Rules that still in effect:

1. Half of the units to be owner-occupied for the projects completed more than one year ago. 

2. Investors can own up to 30% of the units on some of the projects in order to qualify for FHA financing.

The Community Associations Institute, a trade group of community associations, pushed the FHA to revise the rules.  With these changes, more Americans can obtain FHA-insured mortgages to purchase condominiums and help the condominium communities to recover from the housing slump.


Source: HousingWire.com

For condo property search in your area, go to BetancourtRealEstateGroup.com

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