New FHA condo rules will give affordability a boost. The U.S. Department of Housing and Urban Development announced final project approval for single-family condominiums and FHA-insured condo financing. This is exciting news as it will allow buyers the ability to obtain low down-payment mortgages. Condos often offer more affordable housing options.
The new FHA condo rules will go into effect in October 2019. These new rules will extend FHA certifications on condo developments from two years to three years. While this will reduce the compliance burden many condo boards have faced, it will also allow for additional flexibility in the ratio of investors to owner-occupants allowed for FHA financing in a condo complex. Another benefit is that it will now allow for single-unit mortgage approvals. This will enable FHA insurance on individual units even if the property does not have FHA approval.
The details of the new rule for single-family condo financing has been published in the Federal Register. Read more online at https://federalregister.gov/d/2019-17213, and on govinfo.gov. With these new rules going into effect, now may be the time to consider a Crested Butte condo purchase.
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