\nFHA announced that it is relaxing some of its condo rules to make condo loans easier to get.\u00a0 This is huge and ought to improve affordability as well.\u00a0 As it exists, condo complexes need to be approved by FHA in order for lenders to make FHA loans on them.\u00a0 FHA loans differ from conventional loans in that the down payment and qualifying credit scores can be lower.\u00a0 That makes these loans perfect for first-time buyers.\u00a0 Here’s the catch — the approvals include lots of Byzantine rules and restrictions, and home owners associations have to pay to be FHA-approved.\u00a0 This effectively cuts out many would-be buyers, who need to rely on FHA mortgages to get a mortgage at all.
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\nSpecifically, the new guidance extends certifications from two years to three, allows for single-unit mortgage approvals<\/i>, provides more flexibility with owner\/occupancy ratios, and increases the allowable number of FHA loans in a single project. The rule will go into effect in mid-October \u2013 60 days from publication. HUD believes the changes will extend critical benefits to aspiring homeowners and confirm the agency is properly serving the public.<\/span><\/span>
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