09 Sep 09 New FHA Requirements for Condominiums
HUD announced new FHA rules for condos with ineligible properties include condotels, timeshares, houseboat projects, multi-dwelling unit condominiums, and all projects not deemed to be used primarily as residential. Project approval is no longer required for FHA. FHA streamline refinance loans for HUD Real Estate Owned sales.
See the HUD revised FHA loan standards for condo properties:
ü FHA will allow a minimum owner occupancy amount equal to 50% of the number of presold units.
ü No more than 15% of the total units can be in arrears of their condominium association fee payment.
ü Projects consisting of four or more units will have no more than 30% of the total units encumbered with FHA insurance
See the original article> New FHA Condo Guidelines Could Limit Mortgage Refinancing online.
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