By: Isaiah Baril-Dore
Looser Restrictions
For any condo homeowners trying to sell, buy, or refinance in the last few years, they know the difficulty of trying to get a FHA (Federal Housing Administration) Loan. Due to the housing crash, tight regulations were put on these type of low interest, low down payment loans to prevent default and further issues in condos which drag down the housing market. Most people in the industry thought these restrictions were too tight (see our blog post here about FHA) and prevent perfectly reasonable people from getting a loan.
It appears the FHA might be listening with the announcement yesterday that they will be re-working FHA guidelines to make getting a mortgage a bit easier. See full article about it here from the LA Times:
Good or Bad?
The question has to be asked... is it too soon to remove these regulations? Are people forgetting about the housing crash that we are still trying to get out of? These guidelines were meant to prevent homeowners from making bad investments and going belly up, but with the first sign of a turnaround in the housing market, the FHA is ready to loosen up its guidelines. Obviously there needs to be access to mortgages that are easy to acquire for homeowners, but at what cost? We will keep you posted when the FHA makes their official announcement in the coming weeks.What are your thoughts? Let us know in the comment section or on Twitter or Facebook.
