New rules mean more condominiums could qualify for FHA financing.
Lots of people dream of owning a condominium in Florida. From first-time home buyers seeking affordability, to those looking to escape the cold of a northern winter, a condo can be just the ticket.
Unfortunately, one of the biggest hurdles to making that dream come true has been the issue of financing, especially when it comes to FHA loans.
To begin with, there are specific requirements for borrowers who want/need to use a government-backed FHA loan to purchase a property. If that property happens to be a condominium, there can be even more hurdles to clear. Specifically, the FHA will only lend money to borrowers who are purchasing condos in complexes that are already approved by the FHA.
Come October, however, the criteria for which condos are FHA warranted, or approved, are becoming a bit more flexible. And that’s good news for condo purchasers everywhere.
Fewer Owners Need to be Full-Time Occupants – Previously, 50% of a condominium community’s owners had to live in the building full time if it was to be FHA warranted. Beginning in October, that number drops to 35%.
Single Unit Mortgage Approvals – Also known as spot approvals, this means the FHA can insure loans on a case-by-case basis, even in complexes that are not currently approved/warranted by the FHA.
Certifications Extended to Three Years – Previously, condos could only be certified (or warranted) for two years at a time. Condo boards can now secure certifications for three years at a time, reducing administrative hassles.
If you have questions about specific FHA requirements, check out our list of Mortgage Lenders. Any one of them should be able to get you the answers you need. And if you’re looking for a condo in Jacksonville, Jacksonville Beach, St. Augustine, or anywhere in northeast Florida, get in touch with us!