FHA Rules Make Life Tough For Condo Sellers

Square Feet Commercial Real Estate Blog reports:

Beginning, October 1st, the FHA has instituted new rules around loans on condos. The full letter is embedded below. The new rules are pretty dramatic, particularly for new condo and vacation-unit developments seeking FHA approval. The rules require at least 50% of the units in the project to have been sold for new product, and completely drops projects which are not intended to be primary residences. Additionally, consider the fact that the FHA guaranteed about 25% of the mortgages made in the United States this year.

You'll want to read the rules. All of them.