It’s About to Be Much Easier for You to Buy a Condo

If you’re interested in becoming a condo homeowner, but haven’t had much luck, this news will be a reason to renew your efforts. 

Today we’d like to make you aware of an upcoming change to FHA condo financing that just might benefit you—especially if you’re a first-time homebuyer. It could also be that you’ve previously tried to purchase a condo with a low down payment and had no such luck. 

Historically, very few condo buyers have qualified to purchase with less money down, so a lot of would-be millennial buyers have opted for apartments instead and the condo homeownership rate among millennials has suffered as a result. Those who are buying are sticking to single-family homes. 

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Once this change goes into effect, you’ll likely see condo prices return to healthy levels and more first-time and millennials buyers qualifying to purchase them.

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So what changes will soon take effect? 

Starting October 1, the FHA is allowing individual condo units to qualify for mortgage insurance. Until now, individual condo units have been treated as part of the whole, meaning they’ve been subject to rigid guidelines imposed upon the association that governs them. 

Thanks to this change, if one building is entangled in litigation, none of the other buildings within that particular association are affected. That clears the way for millennials to take advantage of lower down payments on condo mortgages. 

Once this change goes into effect, you’ll likely see condo prices return to healthy levels and more first-time and millennials buyers qualifying to purchase them. Mind you, you’ll want to pay attention to the specific guidelines regarding the number of units covered per building, but there will no longer be a long, complex process to get each building passed.    

Whether you’re a first-time, millennial, or condo homebuyer, keep an eye out for this exciting change coming October 1. If you have any questions or would like more information, please don’t hesitate to let us know. We look forward to hearing from you!