The Federal Department of Housing and Urban Development (HUD) recently released new rules that positively impact the ability of a buyer to get an FHA insured loan in a condo.
Traditionally, the entire condo complex had to be approved as an FHA complex in order for a buyer to qualify for the insured loan. One of the criteria was that the complex had to have the right ratio of owner-occupied units. With all the investor-owned condos in San Diego it was often difficult to find an affordable complex that met the high owner-occupied ratio.
The new guidelines offer several key changes which will benefit first time buyers but the two I am most enthused about are as follows:
- an individual condo in a complex can qualify even if the complex isn't FHA approved
- there is now some flexibility in the owner-occupied ratio.
If you have questions talk to your lender or read the HUD document which reviews all the updates. This should help open up more options for first-time buyers. So exciting!
