New rules that open more condos and complexes to Federal Housing Administration (FHA) loans go into effect in October finally providing a break for first-time Orlando condo buyers.
Of special interest to condo heavy Florida, is a policy that makes some individual condominium units eligible for FHA mortgage insurance – even if the condominium complex isn’t FHA approved. This should make Orlando condo conversion projects like the Madison in MetroWest easier to finance.
While the U.S. has more than 150,000 condominium projects, only 6.5% are currently approved to participate in FHA’s mortgage insurance programs. The FHA estimates that as many as sixty thousand more condo units might be able to get FHA-insured financing now.
This is huge news for first-time buyers as 84% of FHA loans are for first-timers.
The new rule:
- Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing
- Extends the recertification requirement for approved condominium projects from two to three years
- Allows more mixed-use projects to be eligible for FHA insurance
For more information on making an Orlando condo purchase, please contact us here at Condo Metropolis on 407-901-5161 or email: Info@CondoMetropolis.com