The Federal Housing Authority has enacted new FHA Financing guidelines. The purpose of these guidelines is to allow more buyers take advantage of their lending programs.
Single Unit Mortgage Approvals
In condo complexes not approved for FHA financing, buyers can now apply for Single Unit Mortgage Approvals. This program was in effect in the past but was discontinued. Also known as “Spot Approvals”, it allows for a single home in a non-approved complex to obtain FHA financing. This will allow many more buyers, across the county, to purchase home in these non-approved complexes. Even though there are other, low down payment programs available, the FHA solution may be best for some buyers.
Longer Approval Terms
When a condo complex applies for FHA approval, the process requires a lot of paperwork. It can also become expensive. As a result, many complexes have not applied for renewal of the approval. The new guidelines extend the approval period from 2 to 3 years. This may make the approval process more appealing to many condo complexes.
Investors to Owner Occupants Ratio
Part of the formula for approval is how many investor owned properties are there in relation to owner occupied homes. If the ration is too high, approval will not be granted. The new guidelines increase the allowable ratio.
Bottom Line
These new guidelines, hopefully, will allow more buyers to take advantage of this financing option.
When you’re ready to look for homes, please call us and let us help you. We’ve helped hundreds of families buy and sell their homes in the Howell area, and we would like to help you too. Call Bunny and Art Reiman – Realtors, today!