Wednesday, September 09, 2009

FHA changes to loans for condos

There's news on FHA loans for condos, and restrictions are even tighter than they were before. Yes, they will still guarantee purchase money loans, but with the following stipulations:
- The units have to be 51% owner occupied (that isn't new);
- No more than 15% of units can be more than 30 days' delinquent on dues;
- There needs to be "walls-in" insurance. This insures replacement of items like kitchen cabinets, bathroom fixtures, etc. Most condo insurance policies cover the walls to the studs, and that's it;
- there is a restriction on how many units may be FHA financed. This is sort of like "I don't want to join a club that would have people like me as members."
This is not all-inclusive, and I understand there's some case-by-case flexibility.

1 comment:

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