FHA Eases Condo Project Approval Requirements
The Federal Housing Administration (FHA) recently published new guidelines under its condominium approval process intended to increase affordable housing options for first-time and low- to moderate-income home buyers.  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.    

These 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.