By Julian Hernandez | Phoenix Business Journal
Valley real estate agents are optimistic that a change in Federal Housing Administration rules will help financially stressed millennials buy their first homes.
D. Patrick Lewis, president of the Arizona Realtors Association, said changes to the types of homes that qualify for FHA-insured loans will help millennials who are searching for affordable options.
Rule changes that went into effect Oct. 15 will allow the FHA to insure mortgages for units in condominium projects not previously approved by the administration. Known as “spot approvals,” the process is returning after being banned in 2010.
Loans insured by the FHA can be more attractive to potential homeowners with low incomes and poor or non-existent credit, as they often require lower down payments than conventional mortgages.
(Subscriber Content)
