Last November, HUD issued a set of temporary guidelines to help ease the FHA’s condo approval process so that more affordable housing options would exist for both first-time and low-to-moderate income homebuyers.
The federal regulator has been working towards creating a set of permanent standards, and recently sent a final rule to the Office of Management and Budget (OMB) for review. This final rule, according to Inside Mortgage Finance, would continue to make it easier for first-time and low-to-moderate income homebuyers to obtain FHA financing for certified condominium units.
Once issued, the final rule will replace the FHA’s temporary guidelines. The final rule is expected to reflect most of the measures found within the interim guidance, including the modification of the requirements for condo project recertification, the revised calculation of the FHA’s required ownership-occupancy percentage, and the expansion of eligible condo-project insurance coverages.
HUD’s final rule regarding the FHA’s condo approval process is not yet available, but for more information on these temporary guidelines, check out the FHA’s Mortgagee Letter 2015-27.