It’s been two months since the FHA announced a long awaited update to it’s condominium rules. For those looking for the short and skinny of it, an individual condo unit in a building of 10 units or more is now eligible for spot approval if no more than 10 percent of the units are FHA-insured. Alongside this, restrictions are also being loosened on owner-occupancy rules, stating that eligible condo projects will now be only 50 percent owner occupied, giving insurance to 50 percent of units in any given project as well. Talking further about this subject was Department of Housing & Urban Development Secretary Ben Carsonn, stating the following;
“FHA is publishing a new rule in the Federal Register that we believe will offer significantly more options for individuals and families to buy a home, specifically the kind of home more and more people are looking for in order to achieve homeownership, and of course that is a condominium. These new rules will open many doors to buyers who have been waiting on the sidelines, waiting to become homeowners, waiting to share in the American Dream.”
Alongside these news, NAR (National Association of Realtors) President John Smaby showed the same positive attitude that Carson did, stating the following:
“It goes without saying that condominiums are often the most affordable option for first-time homebuyers, small families and those in urban areas,” Smaby continued. “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.”
More information regarding these changes towards condo approvals can be viewed in the updated version of the FHA’s single family handbook. As for this update, what do you think of the changes made? Do you feel as if this will make the first step towards homeownership for those easier? Or do you have other feelings towards the subject? Feel free to bring your discussion in the comment section and let us know what you think.
