Good news: FHA is working on revised condominium regulations. It's mum about the details and timing, but John Anderson, a broker with Twin Oaks Realty in Minneapolis-St Paul, Minnesota, has some blunt recommendations to help FHA get its revisions right:Chuck the current blanket 50 percent owner-occupancy requirement. It's stricter than Fannie Mae and Freddie Mac's standards and it unfairly prevents condo unit sales to credit-worthy buyers simply because the project as a whole doesn't qualify.Soften up on the project certification rules. They are still "scaring away condo boards" from seeking certification and thus closing the doors to FHA-financed purchasers.Dump the current "concentration" limit of 50 percent that prohibits FHA insured loans on units if FHA financing ...
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