New FHA condo rules coming!

Hoboken Condo buyers and sellers – Must Read!

 Local lenders are telling me that new FHA(Federal Housing Administration) lending rules for condominiums will be changing as of November 3rd, 2009.  

This could have a negative impact on our local market as we have a large condo market and FHA loans are one of the few options available for borrowers who have less than 20% for a down payment.

Some of the new impending rules:

Spot approvals eliminated

No more than 30% of units can be financed with FHA loans

50% pre-sale requirement for new projects

At least 50% of units must be owner occupied

Details

Most condo buildings in Hoboken did not go through that FHA approval process.  

If your thinking of buying and do not have 20% for a down payment, ask your real estate agent if the building you’re interested in purchasing is FHA approved.  If not, listing agents should consult with their sellers to see if the association or management company should start the FHA approval process.

I’m told that if you’re interested in a FHA loan and your lender obtains an FHA case number before the November 3rd deadline, you should be ok.  I would double check with your mortgage professional to see what their individual rules may be.

Check to see if your Hoboken or Jersey City condo building has been FHA approved

For more valuable information please go to I Want to Buy my Home at the Bottom.

As a top Hoboken REALTOR, I can help you through the entire process of buying your first home. If you are looking for assistance in finding the perfect home in Hoboken, contact Eddie Perez at (201) 344-2886 or go to Hoboken Condo Expert.