FHA to make condo buying easier?

Presales rule, loan limits among recent changes

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Two years ago, almost no one would have thought that Federal Housing Administration-insured loans would become one of the most important sources of financing for real estate sales. Recent changes in FHA guidelines may make an FHA-insured loan a great choice for your purchase.

FHA dates back to the National Housing Act of 1934. As part of that legislation, the 30-year fixed mortgage came into being. FHA has served as an important resource for buyers for 70-plus years, and its loan programs often allowed people to purchase with little or no money down.

I remember doing my first FHA deal back in the 1970s. The property was priced at $62,000. In order for the transaction to close, the seller had to pay two points for the buyer ($1,240) plus all the normal closing costs (about 8 percent, part of which included commissions, the title policy, and the proration of taxes, interest and insurance).