If you haven’t heard, HUD has expanded their condo qualification requirements! Condos can now be approved on an individual basis (non-FHA approved projects), assuming basic criteria is met. HUD’s previous approach had significantly limited the condo market, and had a negative impact on first time and seasoned homebuyers. HUD expects these changes to open up homeownership to roughly 20,000-60,000 homebuyers!
The criteria for a condo to qualify:
-Max FHA concentration in the complex of 10% (projects of 10 units or more)
-50% owner occupancy
-Less than 35% commercial/non-resident space