Condo buyers will benefit from three changes in FHA Mortgage Insurance for Condominiums (HR 3700) passed by Congress July 12th, 2016 and awaiting President Obama’s signature. Transfer Fees – which limited FHA approval for condos such as Rossmoor in Walnut Creek, CA will now be consistent with the standards set by Fannie Mae and Freddie Mac. Once implemented will open up these communities for FHA loans including the HECM – Reverse Mortgage. Owner Occupancy Requirement – could be reduced from 50% to 35% which would open up FHA financing for more condominium projects to more buyers. Project Recertification Requirements – will be “substantially less burdensome” than the original certification. It may be that the length of time between certifications will be lengthened. Each of these changes will help the market for condominiums by making more projects available to more home buyers, everyone knows that buying a home for the first time may be hard, this is why there is a first time home buyers program for all of those people. Condo’s can be a less expensive option for home buyers. Implementation of these changes are expected within 90 days of the President’s signature. Call us today to find out if an FHA loan will work for you! Clay Selland, President Signet Mortgage Corporation 925-807-1500 x303 Clay@SignetMortgage.com NMLS#183492
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