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:
• 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