New FHA Condo Rules Expand Access to Reverse Mortgages

In response to changing conditions in the condominium market, the Federal Housing Administration (FHA) today proposed new rules that would allow individual condo units to become eligible for FHA financing, including Home Equity Conversion Mortgages (HECMs), an agency spokesman confirmed

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New FHA Rules to Create New Association Duties

On September 13, HUD released new rules for the Fair Housing Act (FHA) that will impact community associations. Under these new rules, which take effect on October 14, 2016, a community association could face liability for the discriminatory acts of

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Condominium Leasing Restrictions’ Impact on FHA Home Loan Eligibility

Frequently, the governing documents of condominium associations contain limitations on the ability of owners to lease or sell their property, such as provisions requiring owners to obtain the Association’s approval before such leases or sales may take place. Although these

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New Federal Law Eases FHA Restrictions on Condominium Mortgage Loans

Congress has just enacted new legislation on housing that should have a positive effect on condominium mortgage loans. The new law requires the US Department of Housing and Urban Development (HUD) to loosen the burdensome restrictions that, in recent years,

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HOA HOMEFRONT: New law eases condominium lending requirements

While HOA law is primarily a state law issue, federal government is increasingly involved in issues including housing discrimination, satellite dishes, amateur radio antennae and environmental law.  One of the largest expansions of federal involvement occurred in 2009, when the

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FHA pulls rug from under resident’s retirement

Her three-bedroom condo in Talega Gallery no longer qualified for Federal Housing Administration-insured loans. As a result, she can’t get a reverse mortgage.  Even more aggravating is that Talega Gallery actually does not violate the FHA rules, which ban FHA

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Want to buy a condo? See how a new law could expand FHA options here in O.C. (CA)

For 15 years, Judy Johnson planned to get a reverse mortgage when she retired, supplementing her Social Security with proceeds from her San Clemente condo.  But after she stopped seeing clients and shut down her public relations business last year,

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New Law Makes Changes to FHA Condominium Approval Process

Unless a condominium association is certified by FHA, lenders may not offer borrowers FHA-insured mortgages. In 2009, FHA implemented a number of changes to the agency’s condominium approval requirements. As a result, the number of FHA-approved condominium associations has plummeted.

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President Obama Signs Legislation Modernizing FHA Condominium Approvals

The White House announced President Barack Obama has signed H.R. 3700, the Housing Opportunity through Modernization Act. H.R. 3700 is now federal law.  H.R. 3700 reforms the process used by the Federal Housing Administration (FHA) to determine if condominium unit

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New FHA bill brings good news for condo buyers

Congressional Democrats and Republicans haven’t agreed on much lately, but they’re together on one issue that affects condominium buyers and sellers across the country: The Federal Housing Administration has bungled its condo finance program.    Read the article…………..

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Senate Passes Bipartisan FHA Condo Reform Bill

The Senate approved a bill Thursday by unanimous consent that includes major reforms to the Federal Housing Administration condominium loan program and the Rural Housing Service loan program.  The bill, which has already cleared the House, would streamline the FHA’s

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Reverse Mortgage Industry Voices Concerns Over FHA’s HECM Proposals

Other commenters raised concerns over FHA’s proposals related to its rules on HECM eligibility for community association, such as condominium homeowner associations and housing cooperatives.      Read the article………….

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FHA Proposes Rule Restricting Reverse Mortgages in Super Lien States

Recently proposed changes in FHA lending programs and guidelines could have drastic effects for 22 states (including Colorado) and the District of Columbia. The proposed reforms would restrict owners’ eligibility for Home Equity Conversion Mortgages (i.e., reverse mortgages) in states

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Legislation easing FHA loan restrictions on condos remains in holding pattern

A bill that would make it possible for more condo buyers to get financing through the Federal Housing Administration (FHA) has run up against inertia in the U.S. Senate after gaining unanimous support in the U.S. House.    Read the

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Proposed HUD Rule Would Make Associations Guardians of Civil Rights

Community associations are microcosms of democratic society. They are relatively self-sufficient communities, each with their own rules and citizens, and they are governed by an elected board of directors that serves to manage and operate the community as well as

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New FHA proposal puts reverse mortgages above HOA super liens

The Federal Housing Administration proposed a new rule today that could strengthen its Home Equity Conversion Mortgage Program.  Perhaps one of the largest reforms, is the prioritization of the HECM lien above all others — the establishment of a so-called

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FHA may be open again to financing condos

Could the Federal Housing Administration finally be opening its doors again to financing more condominium units? If so, that could be excellent news for young, first-time buyers and for seniors who own condo units and need a reverse mortgage to

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HUD’S Fair Housing Decision Upheld by First Circuit Court of Appeals

The U.S. Department of Housing and Urban Development announced today that it has won an important Fair Housing Act victory in the United States Court of Appeals for the First Circuit. The decision upheld a Final Order of the Secretary

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New HUD Guidance on Use of Criminal Background Checks

On April 4, 2016, HUD’s General Counsel released guidance for all housing providers (not just those who are HUD subsidized) regarding how the use of criminal background checks could potentially violate fair housing laws. If you are a Landlord and

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New rules for condo buyers with FHA, VA loans

Did you know a homeowners association could have an impact on whether you can buy a condominium with a government-backed loan?  As of 2009, both the Federal Housing Administration and Department of Veterans Affairs require a condominium’s homeowners association to

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Changes Coming in FHA Condominium Guidelines?

If you’re a listener to “Condo and HOA Buzz” you heard over the past two weeks that Congress recently passed a bill that includes important provisions affecting all condominiums in the country. On February 2, 2016, HR 3700 was approved

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HOA HOMEFRONT: Understanding VA and FHA lending practices

Q. I own a condo that is for sale. My agent tells me she had two offers with VA loans, but the development is not approved for VA or FHA loans. Never heard of such a situation, please enlighten me.

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FHA Condo Approval Changes

FHA loans are government-insured housing loans that make it easier for people with low credit, low income or a high debt-to-income ratio to get a home loan. The Housing Opportunity through Modernization Act of 2015 is an act that suggests

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Landslide vote in House bodes well for easing limits on condo sales

By a 427-0 vote, the House passed the Housing Opportunity Through Modernization Act, co-sponsored by Reps. Emanuel Cleaver II (D-Mo.) and Blaine Luetkemeyer (R-Mo.) Among other provisions, the bill would force the Federal Housing Administration to ease rules and restrictions

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FHA condo buyers: Beware of the lifestyle enhancement fee (CA)

None of the condominiums in Ladera Ranch are FHA approved because the mandatory Life Style Enhancement Fee, paid every time a Ladera Ranch property is sold, does not meet FHA guidelines.   Read the article…………

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Changes in FHA Condo Approvals?

On Tuesday of this week, H.R. 3700 – Housing Opportunity Through Modernization Act of 2015 passed out of the U.S House of Representatives, and yesterday it was received in the U.S. Senate and referred to the Committee on Banking, Housing

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Quick Update: Proposed Changes to FHA Condominium Project Approval Process

According to Community Associations Institute (“CAI”), a leading national community association organization, the U.S. House of Representatives will vote today on important changes to the Federal Housing Administration’s (“FHA”) condominium project approval process. The changes to the FHA condominium project

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Easier-To-Understand Mortgage Disclosures Benefit Consumers and Community Associations

It is often difficult to decipher all of the information and terms on a mortgage loan disclosure. Yet with a signature, they bind us far into our futures. On October 3, 2015, those disclosure requirements changed for the better. They

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New Lending Guidelines Making It Tough on Some Condo Buyers- Condo HOAs and Owners You Can Help

A recent article in the Seattle Times, discussing buyer’s challenges with loan guideline changes, reminded me of the importance of HOA and condo buildings doing their best to stay viable and eligible for FHA, VA and Fannie Mae approvals not

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Non-warrantable condos

I shared with you one of the most important things to understand when attempting to obtain financing for a condominium is an HOA Certification, or Homeowner(s) Association Certification. Without a completely acceptable HOA Certification by a lender, your condo loan

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FHA Update: Temporary Guidelines a Start, But More Work To Be Done

The number of condominiums obtaining FHA (Federal Housing Administration) certification has continued to shrink. This is due, in large part, to the fact that the U.S. Department of Housing and Urban Development (HUD), which administers the FHA certification approval process,

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Immediate Changes Come to Condo Financing Thanks to FHA

Effective immediately, the US Department of Housing and Urban Development has loosened the rules regarding condominium financing under the the Federal Housing Administration. The FHA announced that they will be streamlining the recertification process and expanding “owner-occupied” units to encompass

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New HUD Mortagage Letter Impact

On November 13, 2015, HUD released a new Mortgagee Letter (ML) in response to pressure from industry professionals and trade groups. The new ML has revised the current FHA Recertification process, redefined owner-occupants, and clarified insurance requirements.  For the purpose

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New Rules For Warrantable & Non-Warrantable Condo Mortgage Loans

Buying a condo is a lot like buying a “detached home”, but with one big difference — mortgages are tougher to come by.  When you’re buying a condo, lenders impose a different set of rules on you, and may sometimes

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FHA Certified Condominiums

Many condominiums throughout the United States are Federal Housing Administration (“FHA”) certified. This allows prospective buyers to receive FHA-insurance loans and mortgages. If a condominium is FHA certified, that means that the condominium meets all of the FHA legal, financial,

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Critics say FHA reforms don’t rescue condo buyers

If you’re a first-time buyer with a moderate income and not much cash for a down payment on a condo, the availability of Federal Housing Administration financing is a big deal. Not only do you need just a 3.5 percent

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Condo market gets boost from FHA rule change

Buying and selling affordable condos in Chicago and nationwide is likely to get easier, as federal rules on which condo buildings qualify buyers for mortgages through the Federal Housing Administration loosened on Friday.  “The buyer pool just expanded,” said Mabel

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FHA rules for financing condo sales draw protest from 56 House members

Democrats and Republicans on Capitol Hill don’t agree on much. But a bipartisan coalition of 56 House members has come together to file a protest about a housing issue that has been festering since 2011: the federal government’s dramatically diminished

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Critics say FHA restrictions hurt condo buyers

Democrats and Republicans on Capitol Hill don’t agree on much lately. But a bipartisan coalition of 56 House members has come together to file a protest about a housing issue that’s been festering since 2011: the federal government’s dramatically diminished

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Pressure Mounts on FHA to Relax Condo Rules

Lawmakers and housing groups are urging the Federal Housing Administration to relax its condominium regulations to help open up homeownership opportunities for first-time buyers and urban families.  More than 50 House members signed a letter last week asking the FHA

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NAR lends support to bill that would overhaul FHA condo restrictions

The Federal Housing Administration’s current restrictions on condominium financing present a significant hurdle for one of America’s most affordable options, according to testimony given on Capitol Hill by Chris Polychron, the president of the National Association of Realtors.   Read the

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Section 8 renters were harassed (by condo assn), complaint says

The U.S. Department of Housing and Urban Development announced June 3 an agreement with a North Miami Beach condominium association settling allegations its board president harassed and made discriminatory remarks about Black and Hispanic residents and attempted to evict them.

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FHFA Reiterates Vow to Protect GSE-Backed Loans From ‘Super-Priority’ Liens

The Federal Housing Finance Agency (FHFA) has issued a statement saying it has not consented nor will it consent to the foreclosure of a GSE-backed mortgage loan when initiated by a homeowners association (HOA) that has attached “super-priority” lien status

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Fair Housing Month Focus on Disability Discrimination

Mr. Tirell has never asked for special treatment because of his disability, but he did ask the management company for his condominium association for permission to use the visitor’s parking lot, which is only 75 feet from his family’s front

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Everything You Need to Know about FHA Condo Financing

Prior to 2005, few condominium boards paid much attention to FHA financing. At the time, FHA was only a small fraction of condominium loans (about 5%) and FHA buyers, due to smaller down payment requirements, were considered less committed to

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FHA mortages are popular

There are quite a few reasons why FHA mortgages are popular among home buyers and refinancing households.  FHA loans allow for a smaller down payment than many other loan programs available in the marketplace.   Read more………..

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FHA Leasing Refresher

FHA-insured financing may be used to purchase or refinance a condominium unit in a project where the legal documents contain provisions which restrict a unit owner’s ability to lease their unit if the restrictions meet one or more of the

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FHA Condominium Certifications: The Requirements and Prohibitions

The Federal Housing Administration (“FHA”) is a government-owned insurance company that insures home loans for buyers who cannot afford a conventional down payment or prefer to use their available funds in other ways. In other words, a FHA backed loan

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FHA Update: “Temporary” Guidelines Are Extended

To the federal government, “temporary” can mean a long time . . . and that is not always bad! The last time I wrote about FHA financing here, I discussed several “temporary” changes in the criteria for FHA certification. These

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