1:27 AM rent a condo | ||||
#New Condo Guidelines Issued for FHA Approval RelatedCondominium owners are a very specific breed: willing, if not eager, to give up the privacy of a single-family house in exchange for handing over the burdens of maintenance, lawn-mowing and pool-cleaning to someone else. However, condo owners often cling to one of the same protections against downside risk that house owners do: I can always rent the property out. Scared you re paying too much money for your unit? That s ok — you can always rent the property out. Scared your job might be relocated? Well, the condo, is, after all, rentable. Or is it? Last month, a somewhat under-the-radar new mortgage directive clarified and updated guidelines for condo buildings in order for them to be approved by the Federal Housing Administration. While your building doesn t have to follow these guidelines, the FHA is such a gorilla in the current mortgage market backing one out of every three home loans. according to real estate experts DataQuick that conformation with the standards is likely. So let s take a quick look at the newest directive (formally, Mortgagee Letter 2011-22) and see what they mean for your ability to just rent the property out.
I m not trying to come across as anti-investment-condo I own one, and it s an essential part of my retirement plan but I do think it s worth taking a moment, when you buy, to think through what it would be like to rent it out. In other words, landlord emptor . Alison Rogers is the author of Diary of a Real Estate Rookie . Find her on Twitter at @RE_Rookie. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME .
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