If you’re actively participating in a real estate venture, be it for a series of single family homes or just a single unit, if the property is going to be sold when completed instead of being rented out there are some things you need to be aware of that will affect the lower end home buyer. And it’s good new fha loan programnews for a change and pertains to homes bought and financed with FHA loans.

 FHA loans aren’t relegated for first time home buyers but most first times do take advantage of the FHA loan program due to the lower down payment required, just 3.5% of the sales price. FHA establishes the maximum loan amount county by county all across the country based in part by the median home price for the specific metropolitan statistical area, or MSA.

FHA loans have gotten some bad press over the past year due to the backlash received when making the FHA-required mortgage insurance premium a loan-life commitment. Historically, the FHA mortgage insurance premium could be waived once a specific loan-to-value threshold was met. Yet no longer. That had many loan officers send their clients to a conventional loan program that did not have the lifetime MI rule. But a recent FHA change sheds some good light on an otherwise storied program.

If a borrower was foreclosed upon or had to short sale a property it left a bad mark on the credit as well as limited when the borrower would be eligible to finance a home with an FHA loan in the future. This was typically a four year time frame. Now however a buyer can finance a home with an FHA loan as long as the foreclosed borrower can document their monthly income had fallen by at least 20 percent over a six month period and was the primary reason for losing the home to foreclosure.

Conventional lenders don’t make such allowances and even though FHA offers the program the borrowers must have shown no late payments within the previous 12 months to creditors or landlords for instance but it does open up a new class of buyers. If you’re an accredited investor participating in a project that involves low-to-mid tier pricing, the property has more buyers available than it used to have due to this new FHA program.