Posted by: phillipsre | September 15, 2016

Rental Cap For Condominiums To Help With FHA Financing

iStockPhoto_CondoBuilding_squareOver the summer, President Obama signed into law the Housing Opportunity Through Modernization Act (passed by unanimous vote in the US House of Representatives), this act will change the FHA requirements for condominium certification. Specifically, the new law requires the Secretary of HUD to issue additional guidance for the owner-occupied percentage requirement within 90 days of the law’s enactment, which will be around November 1, 2016.

If the secretary does not issue any such guidance in the 90-day time frame, the percentage requirement will automatically reduce from 50% to 35%. The secretary could issue guidance requiring more than 35% on a project-by-project basis, however, but the overall purpose of the law is to relax current FHA requirements and make FHA financing more available to condo buyers and developers. For more information about this new requirement and read the full article, click here.

 

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