HUD announced in a recent Mortgagee Letter that temporary provisions have been made to the condominium project approval guidelines. These new provisions took affect September 13, 2012 and will stay in place through August 31, 2014.
-Relaxed HOA certification forms,
-Allowance for mixed-use developments,
-Updates to the definition of “Under Construction”,
-Developers/Investors may own up to 50% of the total units at the time of approval.
This ease in condo certification means more borrowers can purchase condos using low-down FHA financing. Call me today to learn more about how you can take advantage of these changes.
Share the benefits of FHA with your clients today!
For more information on FHA changes to condo lending, check out these sources:
FHA eases restrictions on condo lending – Chicago Tribune
Real estate industry welcomes changes to FHA condo rules – Inman News
PRM, Your Solution Based Lender
Mortgage bond prices finished the week higher which pushed rates lower. Rates were lower throughout most of the week as the majority of economic data releases showed continued economic weakness. The weaker than expected New York Fed’s Empire Manufacturing Report started rates moving lower. This was followed by weaker than expected housing starts, higher than expected weekly jobless claims, and weaker than expected Leading Economic Indicators data. Existing home sales did surprise to the upside but did not move the market much. Mortgage interest rates finished the week better by about 1/2 of a discount point.
MLO – 40033
4949 Meadows Road
Lake Oswego, OR 97035
- Updated FHA Guidelines… (realtorkaera.wordpress.com)
- FHA relaxes condo rules (seattletimes.com)
- FHA Loan Types | Kinds of FHA Loans | StreamlineRefinance.net (streamlinerefinance.net)
- FHA Refinancing to Avoid Foreclosure (streamlinerefinance.net)
- VA Condos Can Accept FHA Condo Approval- Maybe (delmar.typepad.com)
- House Passes FHA Fiscal Solvency Act (mortgagenewsdaily.com)
- Frequently Asked Questions about Mortgage Refinances (mortgagerefinancerates.org)