News for FHA Loans and Condos…

In a recent article that was posted on www.floridarealtors.org, new guidelines have been placed to help condos be able to use FHA Loans. In the past, First Home Buyer’s Loans were usually granted to single-family, and not for condominiums. When using an FHA loan for a condominium the lenders not only look at the unit but the association. Due to this, it has made it difficult since Associations have kept strict rules, which steer people away from considering an FHA loan.

From the article, these are the major changes:

Major changes

• FHA looks at the percent of current condo owners who are delinquent on mortgage payments. The cutoff is 15 percent, but the individual standard was 30 days late; it’s now 60 days late.

• New rules require at least 50 percent of units to be inhabited by owner-occupants or under contract, while the other 50 percent may be owned by investors. A single investor can own up to 50 percent of the units; previously, single investors could not own more than 10 percent.

• The amount of commercial space is limited now, as it was before, to 25 percent. However, a new rule gives associations a little wiggle room. In certain circumstances, they can request a variance up to 35 percent for commercial space, providing the development remains “primarily residential.”

To read more information in regards to this article, go to http://www.floridarealtors.org/NewsAndEvents/article.cfm?p=1&id=281164

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About yournapleshome

Karen is originally from Cape May County, New Jersey but considers herself a Floridian due to the many years she has resided in this sunny state! She has two children, Kimberly and Jennifer. Kimberly graduated form the University of Florida in 2000 and resides in Naples with her husband and two children. She works in education . Jennifer graduated from the University of Florida in 2006 and resides with her husband in Raleigh, North Carolina. She currently works for the Sweatlock Team as a marketing executive. The Sweatlock Team provides top-notch personable and professional real estate services, custom marketing for listings, efficient and honest service, fair representation, and a team that is ready to work for you! All combined with great expertise and impeccable service- a combination that can't be beat! Our clients are clients for life.
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