FHA changes

Ask the REALTOR: FHA and home values

Question from past client:

I am curious about FHA loans these days. The upstairs unit in my building just got sold to investors, making it two renters in the building and now the down stairs unit may be renting too. I am curious what impact that has on my property value and on potential buyers wanting it.


There shouldn’t be an affect on your home value having investors in the building. However a potential buyer may not be able to do FHA financing because the investor ratio is too high. FHA rules say that 50% or more of the units within a condo development must be owner-occupied for the development to be on the approved list.  Without FHA building approval a potential buyer would have to either pay cash or do Conventional financing. Conventional financing doesn’t have as many rules as FHA, however it does mean the buyer will have a higher down payment.

If you have a question, send me an email at robyn@robynporter.com. I’m happy to answer it and may include it on my blog.

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