More FHA financing may lift Orlando’s condo market
Orlando’s condo market could get a lift from a new law enabling condo buyers to finance unit purchases with mortgage loans backed by the Federal Housing Administration (FHA) in buildings where the units are mostly rented. The maximum portion of rented units will rise to from half to two-thirds, making unit buyers at more condo buildings eligible for FHA-backed mortgage loans to finance their purchases.The new law becomes effective October 27.
Owners of Orlando-area condos and realty agents said broader availability of FHA-backed mortgage financing could hasten the Orlando’s slow recovery from the 2007 housing crash. Thomas Allen, broker for Orlando realty firm Urbanista, told the Orlando Sentinel the new law “would boost our business big time.” The median price of condos in the Orlando area is $106,900, way down from the $182,700 peak in 2006, according to Zillow. [Orlando Sentinel] – Mike Seemuth