FHA Issues Modest Changes to Condo Rules
On Thursday, Sept. 13, 2012, the Federal Housing Administration (FHA) issued a mortgagee letter announcing modest improvements to the treatment of condos under the FHA program.
FHA expanded the ability to use FHA mortgages in mixed-use projects and loosened some of the requirements for investor owners and delinquent HOA dues, among other changes. The measure is viewed as a small step in the right direction but far from achieving closer parity with the treatment of single family homes. Condos are an important entry point to homeownership for millions of Americans.
NAR will continue to advocate for more changes so that consumers can access safe, affordable mortgage credit to purchase condominiums.