FHA loans are an amazing way for a first time home buyer to get a home with a 3.5% down payment. Condos are often the most affordable option for small families that want to stay in the Metro Area of Oahu. Currently, the rules that allow you to buy a condominium with an FHA loan are strict.
New Condo Financing Rules
The Department of Housing and Urban Development has approved new condominium financing rules, these new rules will go into effect on October 15.
First time home buyers will be benefited by these new rules making the metro area of Oahu accessible for affordable housing.
The current owner-occupancy ratio on a building to approve an FHA loan is 50%.
With the new rule, the owner-occupancy ratio will be only 35%.
On top of that, the Federal Housing Administration will be able to insure up to 75% of the mortgages in a condominium project. Those are a lot of condominiums.
Also, mixed-use condominiums with up to 45% commercial use will be eligible to apply for approval.
Bring back the families to Honolulu, the city that we love!