What you should know about upcoming FHA financing changes

Translate this page
Two hands portioning $1 bills into three stacks

06/22/2016 | Author: Editorial Staff

At National Association of REALTORS® legislative meetings last month, U.S. Housing and Urban Development Secretary Julián Castro announced that changes to FHA condo financing rules were out the door of his agency.

The new rules, hinted at when HUD announced temporary changes for FHA condo financing in November, are now at the Office of Management and Budget—the last stop before being published as a proposed rule and open for public comment. Details have yet to be announced, but the updates are expected to include changes to how student loan debt is considered for FHA financing as well as easing of restrictions on the amount of commercial space in eligible buildings and spot approvals. Allowing more commercial space in FHA eligible mixed-use developments would make it easier for those projects to fill their residential units. Spot approvals, which have been discontinued since 2010, would allow individual buyers to get FHA financing for units in buildings that have not applied to be certified by the agency.

The temporary rule changes announced in November include provisions that extend the definition of owner occupied units to second homes, simplify the recertification process for buildings, and ease insurance restrictions—all of which are expected to be addressed in the permanent rule change.

For now, the temporary rule changes are in effect, but new, sweeping updates to FHA condo financing are on the horizon. Updates to FHA rules for condo financing are also included in the Housing Opportunity Through Modernization Act of 2015, which has been passed by the U.S. House and has stalled in the Senate. Texas REALTORS® can contact Sens. John Cornyn and Ted Cruz to ask them to support the bill, H.R. 3700.

Categories: Governmental Affairs, Commercial real estate
Tags: governmental affairs, fha, financing, condo sales


Comments

Rosa Ma. Andrade on 06/24/2016

Just keep me informed

Virgil Eaves on 06/23/2016

The cycle continues.  Loosen standards, enjoy/promote the party, dramatic foreclosures, tighten credit, deep six the economy, repeat.  40 years in real estate and I’ve seen it time and time again.  However, it WILL come to an end when the Fed finally runs out of sway in a fiat monetary system.


Leave a Comment

Read our commenting policy



advertise with us

Legal disclaimer

The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

Advice for REALTORS®

How TREC’s new proposal affects unlicensed assistants

How social media savvy are you?

Why you should come to Austin in February

Have you seen the REALTOR®-only artifical intelligence safety tool?

Subscribe

More advice for REALTORS®