The new condo rules are now set to take affect on December 7th.
“Under the latest rules, 50 percent of units in a condo project will be eligible for FHA funding and up to 100 percent will be eligible in “well-established” projects with a minimum of 10 percent reserves. Half of the units will have to be sold to owner-occupants before FHA will back any loans.”-Realtor
What the guidelines mean to new condo buyers
Nothing has changed. At least for the 50% owner rule. The condo rules are still limiting first time home buyers with buying units that have at least 50% owner occupied residents. THIS IS HORRIBLE! Condo’s have been hit hard and most people have walked away leaving their unit to be sold to investors for less than 1/3 of what they paid. It’s very difficult to find condo’s that are warrantable. For the most part condo’s in Phoenix, Arizona are nonwarrantable. They hold more than 50% non-owner occupied residents. Which means they are a no-go for FHA.
About Daniel Reynolds
Resident of Phoenix Area for over 10 years, I know the Valley of the sun! I have over 5 years in real estate and over 4 years in mortgage financing. Rest assured, I can help you find a home. Whether you're buying or selling, I'm always on the ball and are prompt to answer questions either by phone or email. Please email or call me if you have any questions. My mobile is 480.297.2008 