On October 15th, 2019, the FHA issued new guidelines for condo buyers. First-time homebuyers looking to purchase a condominium will appreciate this new availability because of FHA loans’ low down payment requirement. The new regulations promote affordable and sustainable homeownership and are designed to be responsive to the current market. Many homebuyers who are not able to pursue conventional financing for their condo purchases.
FHA Guidelines For Condo Buyers
After the real estate market crash in 2008, these loans were firmly restricted, and most condos did not qualify for FHA loans. That’s because this financing option requires mortgage insurance, and this insurance was only available for about 6.5% of all condos.
In America, there are approximately 160,000 condominium projects (complexes and buildings). The new FHA program allows mortgage insurance to be possible for about 20,000 to 60,000 more condominiums across the nation. The new plan doesn’t qualify all condos but far more than in the past.
Refinance Opportunities
For condo buyers who did not qualify for FHA loans in the past, they may now be able to refinance a loan to get a better deal with FHA financing.
Easier Condo Sales
For those putting their condos on the market, this new FHA loan may prove to be useful. Sellers may want to investigate to see if their condominium qualifies. If it does, they can use this to their advantage to potentially attract more buyers.
Learn More About FHA Loans
If you are interested in purchasing a condo using an FHA loan, you can contact our expert team of Mortgage Analysts seven days a week by phone or email at (855) 855-4491 and [email protected]. The new FHA guidelines for condo buyers makes mortgage financing much more attainable – especially for first-time homebuyers.
