The U.S. Department of Housing and Urban Development has released updated guidance on FHA-insured condo financing. “This ruling, which culminates years of collaboration between HUD and NAR, will help reverse recent declines in condo sales and ensure the FHA is fulfilling its primary mission to the American people,” said NAR President John Smaby.
Specifically, the new rules will:
- Extend FHA certifications on condo developments from two years to three years, reducing the compliance burden on condo boards.
- Allow for single-unit mortgage approvals—often known as spot approvals—which will enable FHA insurance of individual condo units, even if the property does not have FHA approval.
- Secure additional flexibility in the ratio of investors to owner-occupants allowed for FHA financing in a condo building.
- Ease commercial space restrictions
The full rule is available online at https://federalregister.gov/d/2019-17213
View the HUD Press Release at https://www.hud.gov/press/press_releases_media_advisories/HUD_No_19_121