There have been many changes recently regarding the financing of condominiums. FHA recently announced its newest guidelines for financing condominiums. Realty Times provided the following summary of these rules.
Kenneth R Harney wrote, “On one hand, the rules allow lenders a lot more flexibility in reviewing condo project eligibility and documentation.” He goes on to say, “On the other hand, the agency is imposing a number of restrictions.”
Some of the new rules are as follows:
-Units in Condo hotels, timeshares, houseboats, or any other multiple dwellings inside of one unit are prohibited.
-No more than 25% of the condominium space may be allotted for commercial use.
-No more than 10% of the units may be owned by investors.
-New projects must have more than 50% of the units sold as primary residences.
-There must be fewer than 30% FHA-back loans in the development.
For more information on the new condominium financing rules please contact our office or visit http://www.fha.gov.
For the complete article, click http://realtytimes.com/rtpages/20090629_investorreport.htm
Posted by Karen Gagliardi, Berlin Law Firm, Business Development Coordinator