Hey Homeowners!
Thinking about selling or refinancing this year with a low down payment...? Might not be as easy as it was last year. The Federal Housing Administration (FHA) has put new criteria on any loans that come through their office. Here are some of the new requirements that your condo needs to
have if you want to sell or refinance with FHA approval!
- 10% of entire budget allocated towards reserves every year
- Condo has funds available that equals the deductible under the insurance master policy
- At least 51% owner occupancy
- No pending litigation
- No more than 15 % of common area fees are delinquent by one month
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The list above is just a small portion of the new laws enacted for new FHA lending. Many condo owners and lenders are unsure of how this will affect sales and refinancing in the coming years. Given the subprime meltdown in the last few years, the FHA is taking every possible precaution to protect themselves from foreclosures. For now, we will just have to wait and see. Have you ran into this new process yet in a refinance or a sale? Tell us about it below.
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