Castro Touts FHA Changes at REALTOR® Meetings
U.S. Department of Housing and Urban Development Secretary Julian Castro used the 2016 REALTORS® Legislative Meetings & Trade Expo yesterday as an opportunity to announce progress on a rule implementing improvements to FHA condo financing and a change to the way student loan debt is handled in FHA lending.
The rule is under review at the Office of Management and Budget—typically a last step before finalization—and Castro said it would help make condo financing easier to obtain. “HUD’s rule is out the door,” he told REALTORS® yesterday.
The rule will be open for public comment after it makes it through OMB review and is published as a proposed rule. NAR’s priorities include easing owner-occupancy and commercial-space ratios, and making it easier for condo boards to get certified by the federal government each year.
Castro also announced that FHA is reducing the amount of deferred student debt, from 2 percent to 1 percent, that counts against a borrower’s debt-to-income (DTI) ratio. That means someone with $10,000 in deferred student loan debt would have a $100-per-month repayment obligation in calculating DTI, rather than $200.
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