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

Investor Report: HUD's Condo Rules - HUD just changed its condominium rules again.

It has relaxed its previously controversial requirement that at least 50% of the units in a project be sold before FHA could insure loans for new buyers on individual units. Under the amended rule, FHA financing will be available in projects where at least 30% of the existing units have been sold. HUD also relaxed its controversial policy that no more than 30% of the units in a condo project could be financed with FHA-insured mortgages. The new standard maximum will be 50%. Under certain circumstances, however, HUD said it would be willing to consider situations where the percentage of FHA financing on individual units is even higher.
http://realtytimes.com/rtpages/20091120_investorreport.htm