July 29, 2016
Currently in a political clash, one thing both Democrats and Republicans have agreed on is an issue that affects condominium sales across the country. The Federal Housing Administration (FHA) has upped its condo finance program. The senate unanimously passed legislation that will tighten up financing regulations, and make low down payment FHA loans more available to the people they are intended for – middle class earner, many of them minorities and first time purchasers. The senate reached a voting total of 427-0 in the House earlier this summer.
After several years of complaint by housing and community associations, among others, about FHA’s strict requirements, FHA regulations were adapted. The FHA was the go-o source of condo financing, and has helped finance from 80,000-90,000 condo mortgages a year, but in 2010, their role was slowly diminishing, now reaching just about a quarter of their previous volume. Dropping some 8.6 percent from the previous quarter, the FHA has now adapted, bringing in policies that are “substantially less burdensome” to condo associations. Just having this requirement be filled is expected to bring back some volume to the Housing Administration, and is one of the many new changes to the policy.