FHA ‘bids’ to outmaneuver investors in favor of underserved buyers
Explaining the FHA’s move, Lopa Kolluri, principal deputy assistant secretary for Housing and the Federal Housing Administration, said: “This policy change is critical as the nation continues to address the challenges of a real estate market in which home prices are high and the availability of affordable housing supply is low, making it difficult for individuals and families to achieve the dream of homeownership.”
Commenting on social media, Bernie Godek, former CEO of non-profit housing organization, Habitat for Humanity of Palm Beach County, said it was “an excellent opportunity for us (non-profits) to serve families with decent and affordable housing”.
Godek, who served for the organization for almost 15 years before leaving in March, added: “This is what we do, and we do it better than anyone else – it’s our mission.”
Peter Boogaard, mortgage loan officer at Zions Bank, said it was a “step in the right direction” but raised concerns about the possible condition of the homes.
He said: “Trouble is that the potential homes typically have issues that need to be fixed prior to getting a mortgage. HUD will not allow for repairs to foreclosed properties, so they typically sell to investors that have cash offers and don’t need repairs done prior to closing. HUD truly needs to make some additional changes to their process in order to help those that need it the most.”