Despite what appears to be a non-stop wave of tough news regarding real estate, four major media players have come out this month with the same advice: It Is Time to Buy a Home! Here are the four articles and a breakdown as to why the advice makes sense.
The Wall Street Journal: Why It’s Time to Buy
CBS Money Watch: Why the Time to Buy is Now
Forbes Magazine: 9 Reasons to Buy a House Now
National Public Radio: For Many, It’s Still a Good Time to Buy a Home
FHA will now allow financing on new condo projects (defined as less than 1 year since the 1st unit has sold) to have as little as 30% of the current units sold and owner occupied! This is reduced from the previous requirement of 51%. Detailed information below.
Project Status Requirement
At least 50 percent of the units of a project must be owner-occupied or sold to owners who intend to occupy the units Proposed, Under Construction or Existing < 12 months old FHA will allow a minimum owner-occupancy amount equal to 30 percent of declared units. One year after the first unit conveyance, the project requirement is at least 50 percent owner-occupancy of the declared units. The owner-occupancy percentage must be documented as follows: Copies of sales agreements and evidence (loan commitment) that a mortgagee is willing to make the loan*; or Evidence that units have closed and are occupied; or Information from a developer/builder that lists all of the units already sold, under contract, or closed (e.g. a spreadsheet, chart, or listing used for the company’s own tracking purposes) that is accompanied by a signed certification from the developer.