FHA loans were mainly designed to help borrowers get low cost mortgages at easier terms and conditions. However, will time, rules have become excessively strict which has in turn frustrated the borrowers and have slowed down the real estate recovery. But the good news for condo unit owners is that the FHA (Federal Housing Administration), though presently mum on this topic, is trying to bring some changes in their condo rules. Due to their strict rules, a large number of condo units have become ineligible for low down payment mortgages.
Various requirements for getting a FHA mortgage for condominiums include non-owner occupancy percentage, condo association fees which can't be delinquent, non-residential space usage, etc. FHA officials consider these strict guidelines as important as these will help them in avoiding losses in the insurance fund. However, they have now decided to reconsider some of the strict guidelines that have upset condo owners as well as the real-estate industry.
It is also expected that FHA is also going to clarify their stand on the personal liability language. They are also planning to make other modifications on various other rules. This is something which the industry experts and unit owners are likely to welcome with open arms.