Are you looking to buy a condo or townhouse with a really low down payment? If so, I’ve got great news for you today. Condo rules have been revised by the FHA and they’re really going to be able to help buyers with low down payments purchase condos and townhomes.
Under the revised guidelines, which take effect on October 15, an individual condo building of 10 units or more will now be eligible for a spot approval if no more than 10% of the units in the complex have FHA financing.
Currently, the entire building has to go through a condo certification. A lot of times, the HOA doesn’t want to put up the money to reissue that certification for the FHA. This change will make things much more streamlined when it comes to resolving this problem.
For buildings that have fewer than 10 units, no more than two units can currently have FHA financing.
The FHA is also extending the recertification deadline approved for condo projects for two to three years. These are all things that are going to be able to assist buyers who are looking for a down payment of 3.5% or less. Right now, most buyers will have to come in with conventional financing and need a FICO score of 720 and a down payment of 5%.
I’m excited to see these announcements take effect this fall, especially because the average price for a condo or townhome is $141,000 less than the average for single-family homes. If you have any questions for me about buying a townhome or condo, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.
