The National Association of REALTORS® praised the U.S. Department of Housing and Urban Development (HUD) for changing the Federal Housing Administration’s (FHA) loan policies for condominiums.
Changes will officially be announced Thursday and should allow more homeownership opportunities across the nation, reported the National Association of REALTORS® (NAR).
“We are thrilled that Secretary Carson has taken this much-needed step to put the American Dream within reach for thousands of additional families,” said NAR President John Smaby. “It goes without saying that condominiums are often the most affordable option for first-time homebuyers, small families and those in urban areas. This ruling, which culminates years of collaboration between HUD and NAR, will help reverse recent declines in condo sales and ensure the FHA is fulfilling its primary mission to the American people.”
According to NAR, the rule changes will:
- Extend Federal Housing Administration (FHA) certifications on condo developments from two to three years, reducing the condo boards’ compliance burden.
- Allow single-unit mortgage approvals which will enable FHA insurance of individual condos, even if the property doesn’t have FHA approval.
- Secure additional flexibility in the ratio of investors to owner-occupants allowed for FHA financing in a condo building.