HomeUncategorized

The new rules: FHA revises loan policies

Temporary changes

  • 50 percent owner-occupancy minimum excludes vacant and tenant-occupied units.
  • Condo pre-sale threshold reduced to 30% from 50%.
  • Cap on FHA loans in a building raised to 50 percent from 30 percent; can go to 100 percent in certain cases.

Permanent changes

  • Eligible buildings’ association must have at least 10% of budget in a reserve fund.
  • No more than 10% of units can be owned by one investor.
  • No more than 15% of units can be at least a month in arrears on association fees.
  • Loans now OK when associations have right to reject a buyer, provided there is no discrimination.

– From today’s article by Sun-Times columnist David Roeder about new FHA regulations intended to help condo buyers get loans.

(Visited 44 times, 1 visits today)

COMMENTS