FAAR welcomes the new Federal Housing Authority condominium loan policies that were finalized this week by the U.S. Department of Housing and Urban Development (HUD). By increasing the availability of FHA-backed condo loans, these changes should yield thousands of new homeownership opportunities nationwide and help alleviate affordability restraints impacting many of our nation’s communities.
Specifically, the new guidance extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The rule will go into effect in mid-October – 60 days from publication. HUD believes the changes will extend critical benefits to aspiring homeowners and confirm the agency is properly serving the public.
Click here to read the HUD press release announcing the changes and to access the new regulation in its entirety.