New Rule Will Approve More FHA Loans for Condos

On Oct. 15, the state’s condo market could really open up to first-time buyers after FHA issued new mortgage rules that qualify more condo complexes and units for FHA loans.

The new rule, once effective:

  • Introduces a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing
  • Extends the recertification requirement for approved condominium projects from two to three years
  • Allows more mixed-use projects to be eligible for FHA insurance

The majority (84%) of FHA-insured condo buyers have never owned a home before. While there are more than 150,000 condominium projects in the U.S., only 6.5% are approved to participate in FHA’s mortgage insurance programs. Under the new policy, FHA estimates that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing every year.

To learn more about the new rule, please read the full article from the Florida Association of Realtors here: https://www2.floridarealtors.org/news-media/news-articles/2019/08/new-rule-will-approve-more-fha-loans-condos