FHA eases restrictions on condo mortgages
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The Federal Housing Administration (FHA) is preparing to change its rules on condominiums (condos) that currently cause large numbers of units to be ineligible for low-downpayment insured mortgages. Under the FHA’s current regulations, only 25% of all condo projects potentially eligible for FHA-financing are approved.
The FHA’s condo mortgage requirements have denied many buyers mortgages, further aggravating the real estate recovery. To be eligible for FHA-financing, current controversial FHA limitations on condo mortgages require:
- no more than 50% of the units in a building to be non-owner-occupied ; and
- no more than 25% of the total floor space in a condo project to be for commercial use.
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loading...About The Author
Mary Balash
is a past member of the first tuesday Editorial Staff.
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Great news! many buyers will want condos for savings reasons
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” the administration has now decided to allow revisions that will permit units in more HOA projects to be financed with FHA-insured mortgages.” Do we know what the revisions will be??
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Much to do about nothing! Let’s wait and see if this is anything worth writing about.
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