FHA eases condo approval requirements

The FHA has published new guidelines under its condominium approval process intended to increase affordable housing options for first-time and low- to moderate-income homebuyers. Effective immediately, FHA’s temporary guidance will streamline the agency’s condominium recertification process and expand the eligibility of acceptable owner-occupied units to include second homes that are not investor-owned. The provisions will expire in one year and serve to revise FHA’s condominium approval process until the agency can implement a more comprehensive condominium rule change. The guidance:

• Modifies the requirements for condominium project recertification;
• Revises the calculation of FHA’s required owner-occupancy percentage; and
• Expands eligible condominium project insurance coverages.