• The FHA has changed some of its condo policies in ways that will make it easier for more homebuyers to purchase condos with FHA-backed loans.
  • The changes include redefining "owner occupied," streamlining the recertification process, and allowing more insurance options.
  • The changes are effective immediately.

Tell us about mobile technology in your business for a chance to win an iPhone 6s. Take our survey!

SAN DIEGO — The Federal Housing Administration has made changes to its condominium policies that are designed to make homeownership more accessible to first-time homebuyers.

FHA Principal Deputy Assistant Secretary Ed Golding announced the changes on stage at the “NAR 360” session of NAR’s annual conference Thursday.

The three major changes, to be announced in a Mortgagee Letter today, are:

  1. Properties that aren’t strictly investor properties, such as second homes, will now be included in the percentage of units that are owner-occupied. FHA requires that 50 percent of the units in condo buildings be owner occupied in order to qualify for FHA certification.
  2. An expansion of the types of insurance considered acceptable coverage according to FHA rules, including state-run programs and co-insurance, among others.
  3. A dramatically streamlined recertification process.

These changes are in line with changes advocated by NAR, the trade group said in a press release.

Email Andrea V. Brambila.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Create an Account
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Account Settings
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×