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| FHA Single unit approval |
This month I see several new laws implemented to allow home ownership opportunities. This post is about the FHA new single exception to buy in a condominium complex that is not currently on the approved list.
Several individual condominium
units are eligible for FHA mortgage insurance even if the condominium project
is not FHA approved. The policy is effective October 15, 2019.
- Introduces a new
single-unit approval process to make it easier for individual condominium
units to be eligible for FHA-insured financing;
- Extends the
recertification requirement for approved condominium projects from two to
three years;
- Allows more
mixed-use projects to be eligible for FHA insurance.
There are 150,000 condominium projects in the
U.S., only 6.5 percent or less than ten thousand are approved to participate in
FHA’s old mortgage insurance programs. HUD estimated that 20,000 to 60,000
condominium units may be eligible for FHA-insured financing after October 15th.
2019.
How to get the one-off exception here is what
HUD says I summarize:
Individual units may be eligible for Single-Unit Approval if:
- The
individual condominium unit is in a completed project that is not
approved;
- No
more than 10 percent of the individual condo units are FHA-insured
(properties with 10 or more units) or properties with fewer than 10 units
have no more than two (2) FHA-insured units.
Minimum Owner-Occupancy Requirements
Approved condominium projects must be 50 percent owner-occupied.
Approved condominium projects must be 50 percent owner-occupied.
FHA Insurance Concentration in Condominium Projects
FHA will only insure up to 50 percent of the total number of units in an approved condominium project.
FHA will only insure up to 50 percent of the total number of units in an approved condominium project.
Commercial/Nonresidential Space Limits
FHA will require that the commercial/non-residential space within an approved condominium project not exceed 35 percent of the project’s total floor area.
FHA will require that the commercial/non-residential space within an approved condominium project not exceed 35 percent of the project’s total floor area.
Think of Single-Unit Approvals as
the borderline complexes which “almost” made the approved list or were approved
and failed to update HUD.
If you have a listing in a complex
this makes the real estate more "sale-able", as buyers with smaller down payments
can purchase.
Call me let’s talk about getting
your one – off approval for a buyer.
(949) 784- 9699
C G
NMLS 324982
Equal Opportunity Lender