{"id":65104,"date":"2019-10-15T15:10:23","date_gmt":"2019-10-15T15:10:23","guid":{"rendered":"https:\/\/blog.myewm.com\/?p=65104"},"modified":"2019-10-15T15:10:23","modified_gmt":"2019-10-15T15:10:23","slug":"its-here-mortgage-rule-opens-door-to-thousands-of-condos","status":"publish","type":"post","link":"https:\/\/blog.myewm.com\/?p=65104","title":{"rendered":"It\u2019s Here: Mortgage Rule Opens Door to Thousands of Condos"},"content":{"rendered":"
Buyers found a condo they loved only to find that it doesn\u2019t qualify for a federally backed mortgage? Try again tomorrow. New rules that open more condos and complexes to FHA loans go into effect on Oct. 15 \u2013 a break in condo-heavy Fla. for first-time buyers.<\/div>\n
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WASHINGTON \u2013 First-time homebuyers often opt for a condo, but rules for Federal Housing Administration (FHA) loans banned many units and complexes in Florida from participating.<\/p>\n

However, that changes on Tuesday, Oct. 15, when updated FHA rules go into effect. The new FHA condominium approval regulation \u2013 and a new Condominium Project Approval section of the Single Family Housing Policy Handbook \u2013 are a comprehensive revision to FHA condominium project approval policy.<\/p>\n

Of special interest in Florida, which has a lot of condo units, is a new policy that makes some individual condominium units eligible for FHA mortgage insurance even if the condominium project isn\u2019t FHA approved.<\/p>\n

While the U.S. has more than 150,000 condominium projects, only 6.5% are currently approved to participate in FHA\u2019s mortgage insurance programs, and FHA estimates that 20,000 to 60,000 more condo units could be eligible for FHA-insured financing every year.<\/p>\n

The change is notably good for first-time buyers \u2013 84% of FHA-backed condo buyers are first-timers.<\/p>\n

\u201cFlorida is ground zero when it comes to condominium sales but these markets have been impacted by certain federal rules,\u201d said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach, when the updated rule was\u00a0published in the Federal Register<\/a>. \u201cThe changes being proposed by HUD will go a long way in allowing flexibility in these markets and help more hard-working Americans achieve the dream of homeownership.\u201d<\/p>\n

National Association of Realtors\u00ae (NAR) President John Smaby said the FHA update \u201cculminates years of collaboration between HUD and the National Association of Realtors (NAR).\u201d<\/p>\n

The new rule:<\/p>\n