Let’s face it.
An FHA-approved condominium unit is typically an easier property to sell than a unit in a project that isn’t FHA approved.
· 3.5% down payment· Gift funds can make up entire down payment· 6% seller contribution allowed· Non-occupying co-borrowers allowedWhat’s not to love about FHA financing?Since 2008, FHA has prohibited the approval of condo projects that had leasing restrictions in its project documents. Well no more. Projects can once again protect their marketability by limiting the number of units that can be leased to retain the 50% owner occupancy threshold that FHA requires for project approval. And it’s more important than ever since FHA now requires that a project be recertified every two years. So spread the word! Home Owners Associations need to know that if they’ve previously been turned down for FHA approval, they may now qualify. Other projects may want to look into revising their project documents to incorporate leasing restrictions to be more secure in continuing their FHA approved status.
