FHA temporarily makes it easier for Condos to be Approved

About time HUD loosened things up with regard to Condos so buyers can buy them with FHA financing.

Thus far it’s been a fairly lengthy and tricky process that HOA’s have had to endure to get a Condo project approved and as a result, for many homebuyers, a Condo is not an option if they need FHA financing. Today’s announcement from HUD (that oversees FHA) changes this, making it easier for Condos to be FHA approved.

Here’s a summary of HUD’s announcement today:

Effective immediately, FHA’s temporary guidance will streamline the agency’s condominium recertification process and expand the eligibility of acceptable ‘owner-occupied’ units to include second homes that are not investor-owned.  Here’s the full HUD Mortgagee Letter describing revisions

These provisions will expire in one year and serve to revise FHA’s condominium approval process until the agency can implement a more comprehensive condominium rule change.  Today’s guidance:

1. Modifies the requirements for condominium project recertification;
2. Revises the calculation of FHA’s required owner-occupancy percentage; and
3. Expands eligible condominium project insurance coverages.

Realtors and Homebuyers: If you are aware of a Condo project that either used to be approved and is no longer, or has never been approved, urge the HOA to get their approval paperwork in.  You can see a list of approved Condos (HUD) here.

Qualify for FHA Loan Now: