November 19, 2015
When compared to big banks, The Federal Housing Administration (FHA) has always been the most welcoming source for loans for first-time buyers, yet finding a condo building that fits the eligibility requirements still remains a feat.
Minority buyers, non-wealthy, and first-time buyers make up the majority of those who seek loan assistance from the FHA. According to a new FHA policy recently released at the National Association of Realtors (NAR) conference in San Diego, new initiatives will reportedly ease condo certification procedures and insurance restrictions, as well as lessen requirements on non-owner-occupied residences.
Over the past several years, stringent requirements have caused the rate of previously eligible condos to dip to 20 percent. For example, in August, FHA condo loans amounted to 2.8%, a move illustrated by its once 80-90,000 loans dropping to just under 23,000.
According to NAR President Chris Polychron, “The changes are a tremendous first step in the right direction,” while those who advocate on behalf of the groups filing for loans say that there is still a lot of work to be done.