- Present a new single-unit approval process to make it easier for individual condominium units to be eligible for FHA-insured financing;
- Expand the recertification requirement for approved condominium projects from two to three years;
- Authorized more mixed-use projects to be eligible for FHA insurance.
As of October 15, FHA will insure mortgages for selected condominium units in projects that are not currently approved. An individual unit may be eligible for Single-Unit Approval under the following conditions:
- The individual condominium unit is located in a completed project that is not approved;
- For condominium projects with 10 or more units, no more than 10 percent of individual condo units can be FHA-insured; and projects with:
Minimum Owner-Occupancy Requirements
- FHA will require that approved condominium projects have a minimum of 50 percent of the units occupied by owners for most projects.
- fewer than 10 units may have no more than two FHA-insured units.
FHA Insurance Concentration in Condominium Projects
- FHA will only insure up to 50 percent of the total number of units in an approved condominium project.