- 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.

Single-Unit Agreement

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.