The U.S. Department of Housing and Urban Development (HUD) releases new rules on FHA-insured condo financing. The new rules allow more buyers to obtain low down-payment mortgages on affordable housing options.
The new rules will:
- Extend FHA certifications on condo developments from two years to three years, reducing the compliance burden on condo boards.
- Allows for single-unit mortgage approvals (spot approvals), which will gives FHA insurance on an individual condo unit, even if the complex does not have FHA approval.
- Gives flexibility in the ratio of investors to owner-occupants allowed for FHA financing in a condo building.
Since 2008, realtors have been lobbying government for these policy changes in condo lending. In Westchester, the median sale price for a condo was $387,000 over the last 12 months. This was a 3.2% increase in price over the same period last year.
The full rule for single-family condo financing is published in the Federal Register on Aug. 15, 2019, and available online at https://federalregister.gov/d/2019-17213, and on govinfo.gov.
If you are looking for a condo in our area...AskHollingsworth.
New Housing Stability and Tenant Protection Act of 2019