New FHA Condo Rule Expected to Yield Thousands of New Homeownership Opportunities
The U.S. Department of Housing and Urban Development is expected to release new Federal Housing Authority (FHA) condominium financing policies. The new rules should benefit your real estate clients and customers by allowing more buyers to obtain low down-payment mortgages on affordable housing options.
Specifically, the rule will extend certifications from two years to three, allow for single-unit mortgage approvals, provide more flexibility with owner/occupancy ratios, and increase the allowable number of FHA loans in a single project. The rule will go into effect in mid-October – 60 days from publication. HUD believes the changes will extend critical benefits to aspiring homeowners and confirm the agency is properly serving the public.
The full rule for single-family condo financing is scheduled to be published in the Federal Register on Aug. 15, 2019, and available online at https://federalregister.gov/d/2019-17213, and on govinfo.gov.
For more information about these changes that will allow more buyers to obtain low down-payment mortgages, click here. You may also read the NAR overview of the new rule by clicking here.