FHA Rules That Will Help the Condo Market....

...back home in California, but even more so here in Florida.
South Florida's stalled condo market Should get a boost from new FHA guidelines that went into effect this week. Most banks here have shied away from condo lending because they considered the units high risk. Those that were still lending required 20 to 30 percent down, eliminating the average buyer.
The new guidelines extend the 'spot approval' process until February 1, allowing individual units to qualify rather than requiring an entire complex to earn approval.
They temporarily increase the number of units in a complex that can be financed with FHA loans from 30% to 50%.
They require 50 percent of the units to be owner occupied, but temporarily exclude vacant, bank owned or rented units to be be excluded from the calculation.
They will now allow for a condo board approval (right of first refusal) of the buyer, unless it violates the Fair Housing Act...a permanent change.
One new change is that FHA can bar approval of a complex if it has more than 15% of the units delinquent in association fees.