The Federal Housing Administration has updated its condominium rules allowing for individual unit approval and will be working to improve the process and take a hard look at the requirements for property financing eligibility.
This is great news for first-time home buyers as these new guidelines will make it easier for them to purchase. This is also good for developers as this will make it easier for them to sell.
Until now, the FHA has required re-certification every 2 years with a limit to approved developments only. On October 15th, 2019, the certification will be extended to 3 years and individual condo units may be available for approval if no more than 10% of the units are FHA-insured.
The new guidelines will also secure additional flexibility in the ratio of investors to owner-occupants allowed for FHA financing in condo building.
The National Association of Realtors® commended the Department of Housing and Urban Development for finalizing new Federal Housing Administration condominium loan policies. The changes, many of which NAR has championed for over a decade, should yield thousands of new home ownership opportunities and help alleviate affordability restraints impacting markets across the country.