Great News for Condo Buyers — Insurance & Condo Approvals Just Got Easier

FHFA just made some changes that are going to help your condo deals close. Here's what matters:

 

** Insurance is getting cheaper for condo buildings**

Condo associations no longer have to carry the most expensive type of roof insurance (replacement cost). Switching to a lower-cost option is now fully allowed. That can mean lower HOA fees over time.

 

** Tens of thousands of condo units just became easier to finance**

Buildings that were previously hard — or impossible — to get conventional loans on because of high insurance deductibles can now qualify.

 

** Small condo buildings (up to 10 units) have less red tape**

Boutique condo buildings with 10 or fewer units now qualify for a streamlined review waiver. Less paperwork, faster closings.

 

** Investor-owned units are no longer a problem**

The old rule that blocked conventional loans if too many units in a building were investor-owned? Gone. More buildings now qualify.

Courtesy of John Todaro, Barrett Financial