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, have made it more difficult for condominiums to qualify for FHA-backed mortgage loans. This is important to condominium complexes because FHA-backed mortgages widen the pool of potential purchasers by allowing lower down payments and more liberal credit requirements, such as lower credit scores and higher debt-to-income ratios.   Read the article…………