Unanimous Vote For FHA Condo Legislation

Unanimous Vote For FHA Condo Legislation

  Both the House and the Senate approved a bill by unanimous consent that will change FHA condo rules.  New legislation will streamline the FHA’s certification requirements, relax owner-occupancy requirements, and make condo financing more accessible.   On July 14, 2016, the Senate passed H.R. 3700, the “Housing Opportunity Through Modernization Act” that has been long supported by the National Association of Reatlors®.  The bill passed by unanimous consent (427-0) in the House of Representatives in February, and will now continue on to President Obama’s desk for his signature. The new bill will make the Federal Housing Administration’s (FHA) recertification...Read more
FHA Tightens Eligibility Requirements

FHA Tightens Eligibility Requirements

  It just got a little harder to get an FHA loan as the Federal Housing Administration tightens eligibility requirements.   FHA mortgages account for nearly 1 in 4 mortgage loans nationwide.  FHA loans are attractive to borrowers for the low 3.5% down payment, and attractive to lenders as payment is insured by the Federal Housing Administration. But borrowers are finding it more difficult to qualify for an FHA loan after the Federal Housing Administration recently changed its mortgage guidelines, affecting how lenders underwrite and approve FHA-insured loans.  In particular, the FHA has tightened its income verification for self-employed and...Read more
What is FHA?

What is FHA?

The Federal Housing Administration (FHA) provides programs to promote homeownership and to benefit both homebuyers and homeowners.  Although the country recently suffered through a housing crisis, it was nothing compared to the struggles homeowners faced in the 1930s.  At that time, most home mortgages were only 3-5 years, and large balloon payments at the end of the term were common.  Refinancing was not an option.  The Great Depression forced lenders to retrieve due mortgages, and many borrowers (now unemployed) were unable to make the payments.  Foreclosures skyrocketed.  Homeownership declined and lending came to a standstill. In 1934, the Federal Government introduced...Read more