Real Estate Industry Reacts to Changing FHA Condo Rules
The FHA has revised the rules around condos. In hopes of convincing condo associations to get certified or re-certified financing therefore opening the doors for a lower down payment for unit sellers, owners and buyers, the FHA insured mortgages once again.
This news is widely being taken with positive regard since it will “help spark home sales and help tens of thousands of condominium associations recover from the housing slump," according to the Community Associations Institute, the largest U.S. trade group in the field.
The new rules will eliminate legal liability headaches that hindered many condo boards to resist FHA certifications, raise the permissible investor-ownership limit, and increase the percentage of non-residential use allowed in an FHA certified project.