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GA Blog: HUD

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8.15.19 HUD Unveils Long Awaited FHA Condo Rules

Today, the Housing and Urban Development Department published their public documents changing the financing of condos under FHA.  The new regulations are aimed to make it significantly less difficult to purchase a condo with an FHA loan.

These rules will take effect October 15th 2019 and hold three specific changes as well as noting the minimum owner occupancy percentage as 50%.  First, in a building of 10 or more condo units an individual unit may be eligible for spot approval if the entire building does not exceed the 10% FHA-insured threshold.  Second, the length of time an approved condo project is certified for has been extended from two years to three years.  Third, in mixed-use buildings commercial space can now take up to 35% of the total square footage.

These changes come after over a decade of being championed by the National Association of REALTORS®.  Of the changes, NAR President John Smaby said “We are thrilled that Secretary Carson has taken this much-needed step to put the American dream within reach for thousands of additional families.”

You can find the document itself here at the Federal Register and NAR’s press release here.

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7.30.19 HUD Puts Down Payment Assistance Rule Change on Suspension

 

Following a federal judge ruling in Utah, the Department of Housing and Urban Development has issued a notice to lenders that a rule change HUD made to down payment assistance guidelines in April is being put on suspension until further notice.

The initial April change stated that “a legal opinion” must be obtained for Governmental down payment assistance such that “the Governmental Entity is a federally recognized Indian Tribe operating on tribal land in which the Property is located or to enrolled members of the tribe.”

The lawsuit opposing the HUD change claims that it “unlawfully targets American Indian tribes and bands by prohibiting them from participating in home purchasing assistance programs and thus threatens a critical source of revenue for the Cedar Band” and furthermore it was adopted without proper notice.

The policy in broader terms focused on Governmental Entities having jurisdiction over the area where the property is located.

 

You can read more about this issue on HousingWire and NAHBNow.

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