Washington Report

Advocacy Updates from Washington D.C.

Comment on FHA Condo Rule

On November 28, 2016, NAR submitted a comment letter to the Federal Housing Administration (FHA) regarding proposed changes to FHA Condominium certification requirements. Many of the proposed changes align with areas REALTORS® have expressed a need for more lenience and reflects NAR advocacy on these matters. The NAR letter specifically asks FHA to:

  • Remove the strict requirement on owner-occupancy levels, with a minimum of implementing HR 3700 standard of allowable 35% owner-occupancy without additional requirements;
  • Allow 100% FHA loan concentration in buildings;
  • Allow up to 45% commercial space without documentation and implement HR 3700 requirement allowing lenders to approve waivers and consider local conditions;
  • Bring back spot-loan approval;
  • Increase certification periods and allow for updates to information for re-certification purposes; and
  • Support for new transfer fee requirement allowing beneficial transfer fees connected to condominiums.

NAR expects FHA to release the final rule in spring 2017.

NAR Letter to FHA 

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