It is now easier for buyers of condominium units to get a loan from the FHA or Federal Housing Administration. This is because of the recent law that has been signed into approval by President Barrack Obama. The H.R. 3700 law was signed in August and it is also more commonly known as the Housing Opportunity Through Modernization Act. This act will require that regulators should change some of the rules set for people who are eligible to apply in the Federal Housing Administration for condo development properties.
According to the previous rules, buyers are not allowed to seek loans from the Federal Housing Administration if less than half of the total condo units are not occupied by the owner. Due to the current signed law, the requirement has been down from the 50 per cent requirement to 35 per cent in total owner-occupied units.
The Federal Housing Administration is also advised to relax some of its requirements such as the transfer fees incurred whenever a condo is sold. This is to make it possible for condo associations to gather fees in order to have funds for the ongoing community improvements. The policy is now in sync with the current policy that Fannie Mae and Freddie Mac has.
The Federal Housing Administration is also advised to create a simpler process when it comes to giving recertification. Before the law was signed into approval, developments are required to undergo a very complicated process when applying for their certification which must be accomplished once every two years.
According to the overseer of the Federal Housing Administration, Department of Housing and Urban Development, the agency was given 90 days to implement all the necessary changes. This is in accordance to the National Association of Realtors. With the help of rulemaking, it is expected that there will be other changes taking effect soon.
Based on an estimated conducted by the Congressional Budget Office, the law will increase the guarantee lending by the Federal Housing Administration to around $8 billion from the year 2017 until 2021 because more condo buyers will be eligible for the loan.
If you are looking for Pattaya condos for sale, ask for the local agency in Thailand if you are eligible for a loan.