FHA reduce requirements for mortgage financing
Posted on Wednesday, May 30, 2012 at 5:49:35 PM
According to experts' predictions, the Federal Housing Administration (FHA) is renovating its controversial lending rules for condominiums. The requirements left thousands of units across the United States empty when potential buyers were unable to attain low downpayment insured mortgages. This further deterred many homeowner association boards from even trying to attain FHA approval.
FHA loans are often viewed as an affordable first-time homebuyer financing option. Low interest and insurance rates make it easier for people to make a large downpayment and enter the housing market without the collateral a property sale often provides.
Christopher L. Gardner, managing member of FHA Pros LLC, said barely 25 percent of all condo projects that are potentially eligible for FHA financing are now approved, reports the news source.
Potential homebuyers looking at condos may soon be in luck if the prediction of changing FHA requirements comes to fruition. A buyer may consider paying close attention to changing rules to determine if it can help them purchase their dream home. The housing market changes fast and every opportunity could make owning a home more affordable.