National Association of Realtors President Charles McMillan has written a letter to the new FHA Commissioner with opinions as to what needs to be done within FHA to improve the ability of buyers to get financing in condos. As some folks may know, FHA loans are a great way to buy in today’s market because of favorable loan qualification terms, including requiring as little as 3.5% down instead of the standard 10-20% required by most banks.
What is NAR recommending?
• FHA should adopt a policy similar to Fannie Mae and Freddie Mac that eliminates any owner occupancy requirements if the buyer is intending to live in the unit as a primary residence
• FHA should either increase or suspend the limit on FHA loans allowed in one condo building
• With regards to new condo projects, it is being suggested that FHA reduce or eliminate the requirement that 50% of units be sold prior to FHA insuring a mortgage in the building
These issues and limitations with FHA loans for condos are becoming important to address immediately. So, we are hoping that the FHA Commissioner listens to NAR suggestions with open ears. Want to find out more about FHA? Give us a call or email.
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