FHA Condo Lending requirements to change?

The Federal Housing Administration indicated this week that it is in the process of evaluating changes his condo lending requirements, according to a statement provided to housing wire.

"While we are assessing potential changes to our condo requirements and expect to announce some of that soon, we still not commenting on specific requirements that can be included in all possible changes," a HUD spokesman told housing wire in a statement on Monday.

The FHA condo specify requirements that currently there might not be any new loans in condo developments with more than 15% of the units are more than 30 days delinquent on condo Association fees unless the building meets additional criteria. Another line indicates to FHA to insure a condo loan, must be more than half of the units in the building for owner-occupied buildings built a year ago, with a single investor not owning more than 10% of the units.

Trade groups have urged to rethink her FHA guidelines regarding condo units, particularly in the light of the economic downturn. The community associations Institute, President of the Institute of Real Estate Management, and National Association of Home Builders National Association of REALTORS

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Labels: change?, Condo, Lending, requirements