New FHA Condo Rules

Washington Report: FHA Condo Rules - The Federal Housing Administration puts its long-awaited new financing rules for condo units into operation last week - immediately affecting sales in hundreds of condo projects across the country. Among the key make-or-break rules about are the following:
* FHA won't insure mortgages in buildings or complexes where less than 30% of the units haven't already been sold.
* At least 50% of the units in a project must be owner-occupied or sold to purchasers who intend to occupy them.
* No individual owner or investor can hold title to more than 10 percent of the units in the entire project.
* No more than 25% of the square footage of a condo project can be non-residential - in other words, used for commercial purposes.
* No more than 50% of the units can have FHA insured financing on them. FHA doesn't want to “concentrate its risk” in any single project.
* No more than 15% of the units in a project can be 30 days or more delinquent on their monthly payments to the condo association.
http://realtytimes.com/rtpages/20091214_washingtonreport.htm