{"id":4764,"date":"2019-10-16T15:59:20","date_gmt":"2019-10-16T15:59:20","guid":{"rendered":"https:\/\/blog.caionline.org\/?p=5199"},"modified":"2019-10-16T15:59:20","modified_gmt":"2019-10-16T15:59:20","slug":"welcome-home-new-fha-process-could-make-condos-available-to-more-buyers","status":"publish","type":"post","link":"https:\/\/www.jerrybice.com\/wordpress\/welcome-home-new-fha-process-could-make-condos-available-to-more-buyers\/","title":{"rendered":"Welcome home? New FHA process could make condos available to more buyers"},"content":{"rendered":"

Millions of homebuyers could benefit from new guidelines issued by the U.S. Department of Housing and Urban Development that streamline the Federal Housing Administration’s condominium project approval process. The guidelines, which went into effect yesterday, now allow single-unit approvals, extend the lifetime of approvals, simplify recertification, and more.<\/span><\/span><\/p>\n

In a statement<\/a>, HUD Secretary Ben Carson\u00c2\u00a0says\u00c2\u00a0one goal\u00c2\u00a0of the new process\u00c2\u00a0is \u00e2\u20ac\u0153to open more doors to homeownership for younger, first-time American buyers as well as seniors hoping to age in place.\u00e2\u20ac\u009d\u00c2\u00a0HUD data shows condominium unit mortgages currently account for fewer than 2% of all FHA-insured mortgages.<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

One important\u00c2\u00a0element in\u00c2\u00a0the agency\u00e2\u20ac\u2122s\u00c2\u00a0updated approval guidelines<\/a> includes\u00c2\u00a0single-unit approvals on up to 10% of mortgages in condominiums without FHA approval\u00c2\u00a0provided that they are financially stable. The other changes include\u00c2\u00a0increasing the\u00c2\u00a0concentration rate so that\u00c2\u00a0FHA can insure up to 75% of unit mortgages in a condo project and lowering\u00c2\u00a0owner occupancy rates\u00c2\u00a0from 50% to\u00c2\u00a035% based on financial and operational stability.<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

In addition, the new procedures extend FHA approvals for condominiums\u00c2\u00a0from two years to three, simplify recertification to only requiring updates to information instead of resubmitting\u00c2\u00a0all information, and ease restrictions on mixed-use condominiums\u00c2\u00a0with up to 45% commercial space.<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

HUD estimates that between 20,000\u00e2\u20ac\u201c60,000 condominium units\u00c2\u00a0may now be\u00c2\u00a0eligible for FHA-insured financing annually, and that around 7,000\u00c2\u00a0<\/span><\/span>n<\/span><\/span>ew condominium projects could be built thanks to wider\u00c2\u00a0availability of mortgages.<\/span><\/span><\/p>\n

The new guidelines \u00e2\u20ac\u0153take some of the pressure off boards\u00e2\u20ac\u009d to spend association time and money to certify a condominium project for FHA financing,\u00c2\u00a0says Jeffrey A. Beaumont, vice chair of CAI\u00e2\u20ac\u2122s California Legislative Action Committee and an attorney with Beaumont\u00c2\u00a0Tashjian\u00c2\u00a0<\/a>in Woodland Hills.\u00c2\u00a0<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

The changes should allow greater access to FHA financing and ultimately result in a greater pool of homes for prospective purchasers to choose from,\u00c2\u00a0says\u00c2\u00a0Beaumont,\u00c2\u00a0a fellow in CAI\u00e2\u20ac\u2122s College of Community Association Lawyers<\/a>.<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

CAI supports the actions\u00c2\u00a0and\u00c2\u00a0has made a balanced, data-driven approval process a public policy priority.\u00c2\u00a0\u00e2\u20ac\u0153Following the housing crisis in 2008, the FHA condominium approval process severely impacted access to FHA-insured mortgages, which hurt homeowners and household formation,\u00e2\u20ac\u009d\u00c2\u00a0says Dawn M. Bauman, CAE, CAI’s senior vice president of government and public affairs.\u00c2\u00a0\u00e2\u20ac\u0153The changes\u00c2\u00a0mark a return for FHA as a key long-term partner for condominium associations.\u00e2\u20ac\u009d<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

Credit-worthy\u00c2\u00a0first-time homebuyers\u00c2\u00a0who have been prevented from achieving condominium homeownership could now benefit from the new guidelines. About\u00c2\u00a040% of the nation’s 27 million community association households call a condominium home, accounting for approximately 10% of the nation’s housing stock, according to the <\/span><\/span>Foundation for Community Association Research<\/span><\/a>.\u00c2\u00a0<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

>>Read more about\u00c2\u00a0the updated process at\u00c2\u00a0<\/span><\/b><\/span>www.caionline.org<\/span><\/span>\/FHA<\/span><\/span><\/a>.\u00c2\u00a0<\/span><\/span>\u00c2\u00a0<\/span><\/span><\/strong><\/p>\n

Pamela Babcock,\u00c2\u00a0a writer and editor in the New York City area, contributed to this article.<\/span><\/i><\/span>\u00c2\u00a0<\/span><\/span><\/p>\n

The post Welcome home? New FHA process could make condos available to more buyers<\/a> appeared first on Ungated: Community Associations Institute Blog<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

New guidelines issued by the U.S. Department of Housing and Urban Development will allow more condominium units to be eligible for mortgages insured by the Federal Housing Administration—making homeownership more attainable for first-time buyers.<\/p>\n

The post Welcome home? New FHA process could make condos available to more buyers<\/a> appeared first on Ungated: Community Associations Institute Blog<\/a>.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[61,272,275,417,446,722,990,1046],"tags":[2229],"_links":{"self":[{"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/posts\/4764"}],"collection":[{"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/comments?post=4764"}],"version-history":[{"count":1,"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/posts\/4764\/revisions"}],"predecessor-version":[{"id":4765,"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/posts\/4764\/revisions\/4765"}],"wp:attachment":[{"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/media?parent=4764"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/categories?post=4764"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jerrybice.com\/wordpress\/wp-json\/wp\/v2\/tags?post=4764"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}