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FHA Revises Condo Requirements

FHA loans are one of the strongest financing options for first-time buyers, and condominiums are one of the most affordable and easily maintained property options—but FHA-backed condo loans have not always been an easily accessible mortgage solution. However, with new FHA updates from the Department of Housing and Urban Development (HUD), the condo approval process is about to change in a lot of ways.

Expanded Access

Under previous FHA guidelines, condo certifications only lasted for two years before developers or project owners required re-certification. Fortunately, the FHA will extend the condo certification window another year, giving project owners a three-year period before requiring re-certification. And when reapplying, developers will no longer have to resubmit a complete application; they’ll just need to upload the amended information.

Spot Approvals

According to the current FHA regulations, buyers are ineligible to obtain a single-unit FHA loan if the entire complex isn’t already FHA approved. With the new FHA amendments, spot approvals allow the FHA to approve single condo units within a community; however, the amount of units eligible for FHA insurance varies depending on the total units in the complex. For example, in unapproved projects with over 10 units, no more than 10% of units are eligible for an FHA loan. And in unapproved complexes with under 10 units, no more than two units are eligible for an FHA loan.

More Options

The new FHA guidelines are opening up a lot of incredible homeownership opportunities for first-time buyers, allowing them to easily finance in mixed-use developments and complexes with lower owner/occupant ratios. And now that more condo units will have the opportunity for approval, HUD projects that more condo projects will start appearing in development.

FHA Approval

Starting mid-October, condo financing may be more affordable and more available to countless buyers, which means now is the best time to get approved. If you want a head start on the condo market competition, partner with the mortgage professionals at Butler Mortgage. We can guide you through the approval process or help you find another financing option that best suits your situation. To learn more about the new FHA amendments or to find a different mortgage solution, complete our free consultation form or call 407-931-3800.

How to Get a Home Seller to Pay Closing Costs

When buying a home, many people worry about being able to pay the initial out-of-pocket costs. With the burden of having a large down payment, the extra closing costs can cause people to have to wait on buying their home. However, it can work out in the best interests of both the buyer and seller for the seller to pay the closing costs of the property, helping you complete the sale. Keep these scenarios in mind so that you can get help paying your closing costs.

Give Them What They Ask For

Sometimes, making an offer at (or near) the seller’s asking price can benefit you more than offering a lower price point. If the seller is looking for a minimum amount of profit from the property, meeting their asking price could make the seller more likely to help out with closing costs. This way, you can incorporate the extra cost into your mortgage and spread it out rather than paying it all upfront.

Help Their Timeline

Another time that the seller would be open to helping with closing costs is if they are looking to move out and get the deal done quickly. If they have already begun a mortgage on a new home, speeding up the sale process is in their best interest, and they would be far more likely to help you out with any closing costs. A seller would also be open to helping pay closing costs if you are willing to accept the home as it stands without causing trouble during the inspection period. A little give-and-take in this area can go a long way in your negotiations.

Work With a Real Estate Professional

While getting a seller to pay closing costs is very common to mortgage transactions, in most cases, you would benefit greatly from having a real estate professional go to bat for you. We recommend working with a Realtor for many reasons. Among those reasons is that they are trained to negotiate and know how to take the emotion out of the process. Their goal is to get the best deal for their customer and studies have shown that buyers and sellers alike benefit from working with such professionals.

Mortgage Experts in Central Florida

Buying a home is an exciting event, but it can come with a lot of stress when figuring out how to finance it all. Here at Butler Mortgage, we have been helping families for over 25 years! Let us help you navigate the loan process and make sure you end up with the home of your dreams. Contact us today at 407-931-3800 and get a free consultation.