FHA is going to make it easier to finance the purchase of a condo - at least temporarily.
In an article by Marilyn Alva, Investors Business Daily reported today that the new loan guidelines released by the Federal Housing Administration on Monday will relax the restrictions that have kept condos from being purchased by buyers with low down payments.
While FHA's new guidelines will ease back to 30% of units sold (from 50%) before the possibility of approving loans in condo projects, there is also a new clause that will allow condo associations to have "right of first refusal" to turn down an offer they might deem too low - as long as it doesn't violate anti-discrimination rules.
While Tucson doesn't have a very large amount of condominiums, there are several complexes in highly desired locations at good prices - especially near the University of Arizona. It will be interesting to see if this measure helps to get the condo market moving again - especially while there is still a tax credit available as an incentive to buyers!