Condo Communities Can Look to Reverse Mortgages and FHA loans again Once Regulations are Adopted The most relevant provision of the changes will emulate the FHFA’s rules regarding the transfer fees for FHA mortgages including reverse mortgages. In July 2015 FHA began refusing to approve condominiums in higher cost communities such as Rossmoor in Walnut Creek, CA because of the Golden Rain Foundation Membership transfer fees. Here is a look at the provisions as they stand:
- Reduces the FHA condo owner occupancy ratio to 35%
- Gives FHA the ability to substantially reduce burdens and streamline the condo recertification process
- Provides more flexibility for mixed use buildings.
- Emulates the Federal Housing Finance Agency’s (FHFA) rules regarding private transfer fees for FHA condo lending.
- Allows for approved lenders to directly endorse Rural Housing Service (RHS) loans
- Will streamline programs for federally-assisted housing programs
Condo Communities to get Relief After Passage of HR 3700 Bill
For comprehensive details of the HR 3700 bill, click here. Condominium communities, like Rossmoor Senior Adult Community in Walnut Creek, CA are impacted. Soon, current homeowners and potential buyers of condos will once again have access to more flexible FHA financing opportunities including reverse mortgages. The changes will benefit more than just Rossmoor.
Please contact us for a strategic look at your real estate financing needs. I can be reached at www.signetmortgage.com.