HUD Unveils Long Awaited FHA Condo Rules
August 15th at 9:16pm.
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.”