Last week HUD released the final rule on FHA approval for single-family condominiums. HUD touts the rule as opening the FHA single-family loan products to both younger, first-time home buyers and seniors looking to age-in-place.
The rule sets the policies to update the Single Family Policy Handbook, expand single-unit approval, establish minimum owner-occupancy requirements, limit FHA insurance concentration in condominium projects, and institute commercial/nonresidential space limits. The rule is effective October 15, 2019, and HUD estimates that 20,000 to 60,000 condominium units could be eligible for FHA-insured financing annually.
HUD’s press release on the Condominium Approval Final Rule can be viewed here.
The Condominium Approval Final Rule is available here.