Easier FHA Lending for Daytona Beach Condos is Coming
The World’s Most Famous Beach is a favorite Florida destination, and for good reason. Residents and visitors love the Daytona Beach area as it provides one of the widest and most unique beachfronts in the country. The compact sands allow for beach driving as well as easy biking, running and other waterfront activities. The area is also popular for the array of quality, yet affordable, condo options that provide an oceanfront opportunity at a much lower cost than areas in Miami or on the west coast of Florida. Still, a condo purchase is not possible for all buyers as condo loans generally require larger down payments, and are often less accessible than traditional home loans. But that is about to change!
Recently, a new federal law was passed, the Housing Opportunity Through Modernization Act, which requires the Federal Housing Administration (FHA) to relax its financing regulations on condo purchases. According to the Department of Housing and Urban Development, there are fewer than 150 condo projects certified for FHA loans in Florida out of nearly 23,000 total. There are only a handful in our area which is often a barrier for buyers looking to finance a beautiful beach condo. These new regulations will cut the owner-occupancy ratio for FHA condo certification from 50% to 35%, allow certification for condos that require transfer fees, and make the re-certification of FHA approved condos a much easier and less time-consuming process. These exciting changes will take some time to go into effect, but the implementation is expected to begin in 2017. It should also be noted that this may open the door for more VA-loan approved condos in our area which will exponentially expand the demand for Daytona Beach area condos.
With just 14 Daytona Beach area FHA/VA condo sales over the last two years, we look forward to seeing how these new laws will make it easier to help our customers find their dream condo in the Daytona Beach area. If you have any questions, please don’t hesitate to call us at (386) 527-8577. We are here to help!
*stats from the Daytona MLS