Beginning October 15, 2019, the Federal Housing Administration (FHA), will have new condominium approval rules.
The new rule is designed to help homebuyers purchase a condo with an FHA loan. Up until October 15, in order for an FHA loan to be approved, the entire condominium complex must be approved by the FHA. To date, only 6.5% of 150,000 condo complexes in the United States are FHA-approved, which can make it difficult for buyers to obtain a mortgage.
The majority of people who are in the market for condo are first-time homebuyers. An affordable homeownership option, condo sales continue to be significant in markets across the country. The new FHA rules people another financing option when buying a condo.
FHA’s new condo policy may make it easier for individual units to be eligible for an FHA mortgage loan. The new rule, to go into effect on October 15, 2019, allows for:
As always, NEHM is committed to helping homebuyers understand all of their options. If you have questions about the new condo rules, contact us.
The full list of rules can be found here.