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!
Specializing in Buyer & Seller Representation in the Tucson, Arizona real estate market.
All original material written by Kent Simpson unless attributed to source.©2011, 2010, 2009,2008,2007
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On one hand it is becoming easier and on the other they may be raising the down payment.
Kent,
It is very confusing. "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." The right of first refusal is in the declaration of condominium (if it is there at all) and I do not quite understand how FHA can do it.
My understanding is that the association under the right of first refusal my also be forced to either provide another purchaser or buy itself for the contract price if they reject the original purchaser.
Kent,
I think this means that FHA would now be considering the Associations that HAVE the right of first refusal. I did not know that they were not allowing it before. Still a bit confusing
Howdy there Kent
The area that I'm in, don't really have condo. I don't feel that any kind of association, should have the right to turn down and offer. With this coming about, the next thing you know. Home associations in neighborhoods are going to want to do the samething.