What's Hot: Washington Spirit Owner Michele Kang Lists DC Home for $14.5 Million | The Smallest Home on the Market in DC
FHA May Loosen Up Rules Regulating Condo Sales
FHA officials are considering loosening up requirements that limit the number of individuals eligible for FHA-backed loans, reported The Washington Post this weekend.
FHA-backed loans have become quite popular for home buyers in recent years, as they make it possible for people to invest in a home by offering as little as 3.5 percent of the sale price as a down payment. However, strict rules often make this loan product a frustrating option.
Several of the requirements that draw criticism are in regards to building eligibility. In order for a condo building to be FHA-approved, more than 50 percent of the residents must be owner-occupants, retail and office space must not exceed 25 percent of the entire square footage and more than 15 percent of the units cannot be more than a month behind on their condo association fees. In order for an individual to get an FHA-backed loan for a condo unit, the whole building must be approved.
From the Post:
According to condominium experts, realty agents, lenders and builders, FHA’s rules have become overly strict and have cut off unit buyers from their best source of low-cost mortgage money, thereby frustrating the real estate recovery that the Obama administration says it advocates. Christopher L. Gardner, managing member of FHA Pros, a national consulting firm based in Northridge, Calif., that helps condo boards obtain FHA approvals, said barely 25 percent of all condo projects that are potentially eligible for FHA financing are now approved.
The FHA has expressed a willingness to reconsider some of the issues, reported The Post, but it is unclear what specific requirements will be loosened. We’ll keep you updated as the situation evolves.
See other articles related to: condo buying, dclofts, fha
This article originally published at https://dc.urbanturf.com/articles/blog/fha_may_loosen_up_rules_regulating_condo_sales/5562.
Most Popular... This Week • Last 30 Days • Ever
Our guide for amateur landlords who don't really know what they're doing.... read »
The Heights, a ten-stall food hall that is taking over the spaces formerly occupied b... read »
Whole Foods announced yesterday that the 47,000 square foot store will open on June 2... read »
The Massachusetts Avenue Heights home was previously owned by the former chief execut... read »
A large new apartment and townhouse project has been pitched for the growing pipeline... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
The residential projects that have sprouted up on the Maryland and DC sides of the Fr... read »
With a groundbreaking ceremony on Wednesday, the redevelopment of the Georgetown Wes... read »
The 23,600 square-foot mansion just hit the market, and would set a record if it fetc... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
- The Essential Guide to Being an Amateur Landlord in DC
- Friendship Heights Food Hall Could Open This Month
- Whole Foods at Walter Reed to Open at End of June
- Washington Spirit Owner Michele Kang Lists DC Home for $14.5 Million
- A Two-Phase, 370-Unit Development Pitched For Columbia Pike Gas Station Site
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- Mall Conversions, Trader Joes? The 1,500 Units in the Friendship Heights Pipeline
- The Four Seasons Private Residences in Georgetown Break Ground
- DC's Blaine Mansion Lists For $30 Million, A Potentially Record-Setting Price in the City
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro