Purchase your condo with FHA

The Federal Housing Admin (FHA) is giving the condo market new life in Florida. FHA insures low down payment home loans for private lenders. In the Tampa area the limit for FHA loans is $275,000.00. FHA is relaxing  it’s building underwriting guidelines as a way of helping the struggling condo sector of the market.  FHA wants to get new owners in to struggling buildings. Large areas of down town such as Channelside have hundreds of empty units. Presently many lenders won’t lend on condos and if they do they want 50% as a down payment. FHA is now approving projects not lenders. They are coming in and saying we’ll approve the projects and back them so lenders will feel confident in loaning the money to homeowners.

Among the new temporary rules is a measure extending a deadline allowing lenders to submit mortgage loans for spot approval in buildings that have not been approved for FHA lending. At least 50% of units in a complex must be owner occupied or sold to owners who plan to live in the units.

FHA down payment is 3.5% of sales prices vs 20 to 50% down payment currently required.  This should help fill up empty units.