FHA Loosens Condo Approval Policies.

Says Miami News Herald story HERE. Reported changes from the story:

• Increase from 30 percent to 50 percent the number of units in a project that can be financed with FHA loans. FHA, however, will make exceptions, even allowing up to 100 percent, when buildings meet an additional set of more stringent criteria.

• Require at least 50 percent of units in a complex to be owner-occupied or sold to owners who plan to live in the units. Bank-owned units may be disqualified from the percentage calculation.

• Reduce a pre sale requirement in new construction to 30 percent, compared with 70 percent for loans from conventional lenders.

Two recent FHA Mortgagee Letters on condos provide details:

• Condo Approval Policy
• Temporary Guidance for Condo Policy

Note: Permanent link in right pane ("FHA Mortgagee Letters" ) provides link to ALL FHA Mortgagee Letters.

Originally created and posted on the Oregon Housing Blog