Condominiums are often the most affordable homeownership option for first time buyers, small families, single people, and older Americans. In 2019, the U.S. Department of Housing and Urban Development (HUD) released the long-awaited final rule on project approval for single-family condominiums insured by the Federal Housing Administration (FHA). For many years, NAR urged HUD to finalize changes to the previous rule that would ease restrictions on FHA financing for condominiums, thus enabling more first-time buyers, older adults, and low to moderate-income families to achieve the dream of homeownership. For additional information about the final rule, visit NAR's FHA Condo Rule Assessment. NAR continues to work with FHA to ensure the Rule is working as designed, and condominiums are more accessible to FHA borrowers.

In November of 2020, Fannie Mae updated their condominium guidelines, with Freddie Mac following suit. These new FAQs make it clear that in vacation communities, condominiums that function more like a hotel or resort will not be eligible for GSE financing. NAR continues to work with the GSEs on how this will impact communities.

Condominiums Topics

Advertisement