FHA Eases Condominium Financing Rules

The Federal Housing Administration today lowered its owner-occupancy requirement for condominium financing, effective immediately. Previously, condominiums approved for FHA financing were required to be in developments with an owner occupancy percentage of at least 50 percent. With today’s announcement, financing can now be approved in developments with 35 percent owner-occupied units – provided that certain conditions are met. FHA expects this move to increase mortgage lending to lower-income and first-time homebuyers.


About Author

Monica C. Meinert is a senior editor at the ABA Banking Journal and VP for editorial strategy at the American Bankers Association, where she oversees ABA Daily Newsbytes.