Condo Rule Opens Door to Homeownership for Middle Income Americans

Condo Rule Opens Door to Homeownership for Middle Income Americans

As many may already know, the Department of Housing and Urban Development last week announced the long-awaited arrival of new Federal Housing Administration condominium loan policies.

Many of the changes secured in the rule are policies for which NAR has advocated for over a decade, and indeed NAR believes the final product will yield thousands of new homeownership opportunities and help alleviate affordability and inventory problems plaguing markets across the country.

Specifically, the new guidance extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The rule will go into effect in mid-October.

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