How Miami Condo Sales Will Benefit from New FHA Lending Rules

How Miami Condo Sales Will Benefit from New FHA Lending Rules

Nov 24, 2016 November 24, 2016

Lending, specifically FHA lending, is inching forward in favor of Miami Condos.

Before President Trump pulls out any game-changers, I thought it would be the right time to reflect on a Bill passed into law by President Obama this August. The “Housing Opportunity Through Modernization Act” of 2016 that impacts FHA loan requirements has long been supported by the National Association of Realtors for being universally beneficial.

More specifically, we have an opportunity here in Miami to benefit from the act, especially when it comes to Miami Condo sales.

How FHA Loans Help Condo Buyers

FHA loans are government insured loans that allow up to 95% financing for condo buyers (97.5% for single family homes), have lower credit score requirements and are more flexible in regard to debt-to-income limits. To sum it up, it allows for people with lower down payments and some blips in their financials to still be able to become homeowners.

Owner-Occupants Get an Upper Hand

The Act has reduced the current owner-occupancy requirement for FHA loans from 50 to 35 percent. This is a big deal, since it makes it easier to get owner-occupants into investor-heavy condos. After all, the existing FHA rules essentially punished prospective buyers just because investors might have bought into a condo before them.

Miami Condos Have a Better Chance at Approval

Very few Miami condos meet existing FHA approval guidelines, even though condos make up such a big percentage of local inventory. For example, only one condo in Edgewater (33137) is FHA approved, according to the HUD condo approval website. Downtown Miami, Brickell, Miami Beach and the rest of the condo-dense areas of Miami suffer a similar fate.

So, essentially a large part of the Miami market has been locked out of being able to take advantage of FHA loans. Now, this Act is a small step in the right direction to open that up and create a more balanced FHA lending market for Miami condos.

Easier for Move-Up Buyers

A key point in this Act is that it’s not just good for first-time or low-to-moderate-income buyers, but is also good for move-up buyers ready to upgrade to a nicer condo or single-family home. As original condo purchases get easier to sell with these retooled FHA restrictions, it will lead to a more fluid market where people can move up to bigger and better condos and homes.

For more details into the bill passed by the Senate, click here.

 

Contact Sep Niakan
Founder, Condoblackbook.com & Owner/Broker, HB Roswell Realty
(786) 930-4220
contact@condoblackbook.com
Request Info
By sending you agree to CondoBlackBook's Terms of Use

Recent Posts

Developer Bruce Eichner Announces Plans to Build New Continuum Condo
Real Estate News Developer Bruce Eichner Announces Plans to Build New Continuum Condo
Bruce Eichner, whose Continuum Company in New York delivered the Continuum condo towers located at 50 and 100 South Pointe Drive in South Beach, has announced plans to construct a second Continuum project in Miami. Eichner made the announcement earlier this month, noting that he’s got his eye on possible sites in Downtown Miami, the Design District, and Wynwood for the new project destined for the Miami mainland. Eichner has also declared his plans to work with a “starchitect” new to Miami on the building design, noting that the “same half dozen architects” have designed most new constructions in Miami, and that he’s looking to build something new and different. The plan is to offer units priced below $1,000 per square foot, and as he did with his South Beach project, Eichner will set aside one unit for himself. “I’ve looked at several different pieces of property,” Eichner stated, describing his intention for the new project. “Part of what made the Continuum on South Beach was the...
Miami’s New and Pre-Construction Condo Update: November 2019
Real Estate News Miami’s New and Pre-Construction Condo Update: November 2019
For the latest Miami Preconstruction news, Cipriani launched sales of Mr. C in Coconut Grove, we had two renowned developers announce plans to bring more luxury condos to mainland Miami, and meanwhile, closings started at Brickell Flatiron after receiving TCO. And, Edgewater’s Elysee inched closer to completion, topping off at 57 floors. Read on for details on these and more pre-construction condo updates for the last month below: Launched  Mr. C Residences – Coconut Grove Sales have launched for this 121-unit project by the European hospitality brand Mr. C. Designed by the famed Cipriani family and developed by the Terra Group, the 20-story tower’s architecture will look like a sail thanks to Raymond Fort of Arquitectonica, with interiors by Meyer Davis. In the hospitality brand’s signature style, the residences will feature a contemporary spin on classic European living. Residents can expect ground-level retail, on-site café, garden-level lap pool, butler and lifestyle concierge,...
The Most Luxurious Condo Buildings in Downtown
Real Estate News The Most Luxurious Condo Buildings in Downtown
In recent years, Downtown has quickly grown into one of the Miami’s top neighborhoods, especially because of its central location to all that Miami has to offer. Developers are delivering world-class projects with unmatched luxuries in the core district. Today, a host of ultra-luxury buildings call Downtown home, and we’ve listed the 5 Most Expensive Condo Buildings in the neighborhood that set the bar for luxurious living. We’ve also included a few bonus pre-construction buildings that will soon give these a run for their money. Why Choose Downtown? Downtown is home to some of Miami’s best art, culture, shopping, entertainment, and social hotspots. It not only ties for #1 on our 11 Most Walkable Neighborhoods in Miami report, but also is the best neighborhood in terms of offering public transportation options. Living in Downtown, residents get easy access to the open-air Bayside Marketplace and Marina, lively AmericanAirlines Arena, iconic Perez Art Museum, Frost Museum of...
The Most Luxurious Condo Buildings in Venetian Islands
Real Estate News The Most Luxurious Condo Buildings in Venetian Islands
If you’ve always wondered which top-of-the-line luxuries are available in the exclusive Venetian Islands, then this is the list for you. We’ve ranked the Top 5 Most Luxurious Condo Buildings in Miami Beach’s Venetian Islands, which also happen to be the most expensive buildings of this super desirable neighborhood. Read on to find out what kind of amenities these top-class residences provide and which one made it to number 1… Why Choose the Venetian Islands? This island retreat is one of the most sought-after addresses in Miami Beach. Residents not only get to relish the joys, views and privacy of island living, but they’re also perfectly positioned for a short drive to South Beach and Downtown on either side via the Venetian Causeway. Secluded living and the option to easily dive into all the action in a matter of minutes makes Venetian Island properties some of the most prized in Miami, so much so that they’re also popular with the celebrities for their sheer exclusivity (in this...
Miami’s Most Artsy Condo Buildings
Real Estate News Miami’s Most Artsy Condo Buildings
Have you ever wondered which condos in Miami have amazing art inside? Well, as Art Basel kicks off this week, turning Miami into a playground for the who’s who of the international art world, we’re honoring the condos that honor the art. With over 4,000 artists expected to be showcased this year, the city is swarming with critics, collectors, curators, celebrities, and art and architecture lovers of every caliber. So in the spirit of this world-famous art festival, here’s seven of the Most Artsy Condo Buildings that are part of the creative narrative in Miami. Paramount Miami WorldCenter 900 NE 1st Avenue, Downtown Miami The Centerpiece: PAL-V, the flying car - a “Miami 2020 and Beyond” exhibit Although this is a 2019-only exhibit, it deserves a special mention. Complementing the amenity-rich tower’s 58th floor Skyport, PAL-V (Personal Air Landing Vehicle), a prototype of the world’s first flying car, will be on display during Art Week. Paramount is channeling the master himself,...
6 Fun Things to do During Miami Art Week that aren’t Art
Opinions and Advice 6 Fun Things to do During Miami Art Week that aren’t Art
Miami Art Week has become one of Miami's most dynamic, exciting, and wildly popular events, drawing millions of international visitors yearly, and showcasing the most cutting edge contemporary art from around the world from Art Basel and the multitude of fairs. While getting a healthy dose of art-watching is a wonderful way to stimulate your intellect and awaken your creative sensibilities, it's also important to take some healthy time away from all of that aesthetic stimulation. Below we've listed 6 fun things to enjoy during Miami Art Week that don't require you to try to understand anything abstract. Eat and DrinkEven if you're not that interested in the art, you can definitely enjoy all of the social activities and VIP parties that Miami Art Week brings to town. One of my personal favorite Art Week activities is savoring the tasty brunches that many of our local art spaces serve up during this special time of year. In particular, I can't wait to chow down at the free Creole...