There have been several changes to the FHA rules lately. One of those changes will make it harder for consumers to purchase condos with an FHA loan. Here is an excerpt from a recent Bankrate.com/Detroit News article on this subject:
The new rules were supposed to take effect Oct. 1. But the FHA has announced it would delay implementation of the new rules until Nov. 2, and says it might modify some of the policies.
Of the several new rules and requirements, there are four that most directly affect people who want to buy condos with FHA-insured mortgages:
– “Spot approvals” are eliminated, and now the entire condominium project has to meet FHA approval before a borrower can get an FHA-insured loan.
– A maximum of 30 percent of the units can have FHA-insured mortgages (there was no such limitation previously).
– Before the FHA will insure a mortgage on a condo, at least half the units must have already been sold (again, there was no such limitation previously).
– At least half of the project’s owners will have to occupy their units, down from 51 percent.
November 11th, 2016 at 1:24 pm
Does FHA have a rule regarding Reserves for condominium associations to have a reserve study done by an outside agency on a periodic basis?