Was just reading about a few really nice changes coming up with two key loan types: USDA and FHA.
The USDA has been directed to shift to a direct endorsement model. Right now, my understanding is that a representative from the USDA reviews every USDA loan. They take significantly longer than other loan types to close, which makes them less desirable than others. This change will speed up the process and make it more aligned with VA and FHA loans.
And the FHA is looking at their condo approval process. Right now only 10% of condos are approved for FHA loans. One thing they’re doing to tackle this is streamline the approval process. It’s pretty onerous for any condo that doesn’t have professional management. The other thing they’re exploring is the owner occupant threshold. Currently at 50%, they’re looking at dropping that to 35% of unit owners. This will also open up the number of units available to FHA financing.
So, TLDR: more loans will be available. This should help keep housing affordable for the more modest incomes. Like most of us.
To really understand the different loan types, talk to a lender. I’ve developed solid relationships with several and can put you in contact with an excellent one. Let me know!
