FHA condo changes, many of which your local leaders have championed when traveling to Washington DC in May each year, is hoped to help reverse recent declines in condo sales and ensure the FHA is fulfilling its primary mission to the American people. NAR has been working with HUD on these changes to:
- extend certifications from two years to three,
- allow for single-unit mortgage approvals,
- grant more flexibility with owner/occupancy ratios,
- increase the allowable number of FHA loans in a single project.
Also, in conversations with HUD since 2008, NAR has advocated for changes to FHA’s condo policies that include allowing owner-occupancy level determination on a case-by-case basis, granting up to 45% commercial space without documentation and including a five-year approval period for project certification. The FHA issued proposed changes to its condo rules in 2016 to lift several restrictions within the sector, but the proposed rules were never finalized. We heard from FHA Commissioner Brian Montgomery in May when we were in DC and he noted the agency was closing in on finalizing new condo policies that, by lifting restrictions and streamlining processes, had the potential to significantly boost America’s condo sector.
The rules will go into effect in mid-October – 60 days from publication.