When you’re looking for a wonderful home, sometimes complicated buying rules can be confusing. Well, things are getting a bit easier! Recently, the HUD announced FHA condo rules that are more flexible for homebuyers. If you’re not sure about what that means, don’t worry—we’re here to explain it all.
Terminology
As a quick primer, let’s start off with the terminology! After all, there’s a lot to remember when you buy a home—and some things are just plain easy to forget. HUD is an acronym for The Department of Housing and Urban Development, while FHA is an acronym for the Federal Housing Association. Now, back to the news!
New FHA Condo Rules
So, what are the new FHA condo rules? We’ve broken them down:
- There will be a change in the ratio between investors and occupants or owners;
- Single-unit mortgage approvals are now possible; and
- There will be longer life for FHA certifications. Now, they’ll last three years instead of one.
The rules, however, still have some time to take place. By Oct. 15 of this year, though, they will be fully instated across the board.
How the New FHA Condo Rules Affect Home Buyers
The new FHA Condo rules that are more flexible for home buyers are significant because they affect condo financing. With these regulations in place, buyers can expect effects like:
- A different ratio in investors and occupants means more possibilities for homebuyers;
- Having single-unit mortgage approvals makes getting FHA insurance possible—and easy too; and
- Longer FHA certifications mean that condo boards won’t be so overwhelmed dealing with strict compliance.
All in all, these new rules are a win for home buyers, making it simpler—and more affordable—to get the condo of their dreams.
Summary
Now that the HUD has announced FHA condo rules that are more flexible for home buyers, you’re in even better shape to find the right condo for you. If you’re looking to learn more, fill out our contact form. Plus, Ryan Roberts is here to help you buy or sell in the Auburn, Opelika, or Lake Martin area too. Finally, for more on real estate news, check out our blog.