NEW FHA GUIDELINES OPEN OPPORTUNITIES FOR HOME BUYERS

flickr.com/mikelawrence

 

Condominiums are an important part of the housing market, especially    for first time buyers. Often buyers have the income and credit score needed to purchase a home but lack a substantial down payment which can make entering the housing market prohibitive.

In an effort to promote affordable homeownership for credit worthy buyers, the Federal Housing Administration (FHA) has issued new guidelines that make FHA condo financing an easier, more streamline process. Once a huge part of the first time buyer market, FHA’s strict guidelines made financing a condo difficult, at best. FHA  updated its condominium financing rules, effective October 15th, which will loosen requirements for financing condos.

 

  • Low Down Payment Still Available. Buyers can still purchase a home with as little as a 3.5% down payment.
  • FHA Loan Limit. In King County the maximum FHA loan amount is $726,525.
  • Single Unit Approvals (“spot loans”) Return. If a condo community wasn’t on the approved FHA list, it was difficult, at best, to obtain FHA financing. New guidelines now make it easier for an individual unit to be approved for FHA “spot loan” financing in a community that doesn’t have current FHA approval.
  • FHA Certification and Recertification. Many condo communities have applied for and maintained their FHA certification. Having FHA certification makes a community more desirable to buyers and FHA financing much easier. The FHA condo certification now lasts 3 years vs. 2 and the recertification process has been streamlined.
  • Owner/Occupancy Requirements Eased. FHA now requires a condo community be just 50% owner occupied.
  • Commercial/Non-residential Space. The amount of permitted non-residential space (retail, commercial, parking, etc.) has been increased from 25% to 35%

These updated FHA loan guidelines will now allow thousands more condominium units to qualify for FHA financing, opening homeownership opportunities to many more qualified buyers. Opening the window to homeownership will encourage more owners to buy and occupy homes resulting in fewer investor owned/rented units, higher owner occupancy levels and stronger communities.

 

 

 

 

Posted on October 31, 2019 at 9:30 AM
Robin Myers | Category: condo financing, condominiums, first time buyers, home financing, real estate, supporting communities | Tagged , , , , , ,

NEW FHA LOAN GUIDELINES FOR CONDOMINIUMS BENEFIT BUYERS

 

Condominiums are an important part of the housing market for first time buyers. Too often buyers have the income and credit score needed to purchase a home but lack an adequate down payment which can make entering the housing market prohibitive.

In an effort to promote affordable and sustainable homeownership, especially among credit-worthy first time buyers, the Federal Housing Administration (FHA) has recently issued new guidelines making obtaining FHA financing for condominiums an easier and more streamline process. FHA has issued an update to its condo  rules, effective October 15th, that will loosen requirements for financing condominiums. Here are some of the more important changes effective this month:

 

  • Low Down Payments Still Available. Buyers can still purchase a house or condominium with as little as      a 3.5% down payment
  • FHA Certification and Recertification. FHA requires a condominium community to have obtained FHA certification. It is a detailed process and there is an expense to the HOA involved, but once complete, having FHA certification makes a community more desirable to buyers and FHA financing much easier. The FHA condo certification now lasts 3 years vs. two and the recertification process has been streamlined.
  • Single Unit Approvals (spot loans) Permitted. In the past, if a condominium community wasn’t on the approved FHA list, it was difficult, at best, to obtain FHA financing. The new guidelines now make it easier for an individual unit to be approved for FHA “spot loan” financing in a community that isn’t FHA approved as long as no more than 10% of the units in the community are FHA insured. (A buyer must use a FHA approved lender.)
  • Owner Occupancy Requirements Eased. FHA now requires that a condo community be just 50% owner occupied.
  • Commercial/Non-Residential Space. The amount of permitted non-residential space (retail, commercial, parking) has been increased from 25% to 35%.

These updated FHA loan guidelines will now allow thousands more condominium units to qualify for FHA financing, opening homeownership opportunities to many buyers. Homeowner associations are encouraged to obtain and maintain FHA certification. Opening the window to homeownership will encourage more people to buy and occupy homes resulting in fewer investor owned units, higher owner/occupancy levels and stronger communities.

 

 

Posted on October 10, 2019 at 11:58 AM
Robin Myers | Category: condo financing, condominiums, first time buyers, home financing, real estate, supporting communities | Tagged , , , , , , , , ,

WA State Requirements When Selling a Home

(courtesy  flickr/US CPSC)

This time of year buying or selling a home goes on the back burner while people focus on the holidays, family and friends. Locally real estate tends to take a break until our “spring” market ramps up in late January.

When preparing a home for sale there’s a typical “to do” list that includes organizing closets, power cleaning,  paint touch-up, repairs, de-cluttering inside the home and sprucing up the landscaping outside the home. There are two important items, required by the State of Washington that can’t be ignored.

The State of Washington (along with many other states) requires carbon monoxide detectors be properly installed throughout the home (https://www.doh.wa.gov) and water heaters be strapped to prevent damage or injury in the event of an earthquake. It is important for many reasons to pay close attention to these items: Continue reading

Posted on December 5, 2017 at 9:45 AM
Robin Myers | Category: carbon monoxide alarms, home financing, home safety, real estate | Tagged , , ,