What this means to your clients: The changes will help Massachusetts residents access FHA loans for condominiums, helping to relieve some pressure on the state’s ongoing housing affordability crisis.
The Department of Housing and Urban Development finalized the new Federal Housing Authority condominium loan policies. By increasing the availability of FHA-backed condo loans, these changes should yield thousands of new homeownership opportunities nationwide and help alleviate affordability restraints impacting Massachusetts' housing market.
Specifically, the new guidance extends certifications from two years to three, allows for single-unit mortgage approvals, provides more flexibility with owner/occupancy ratios, and increases the allowable number of FHA loans in a single project. The rule will go into effect in mid-October – 60 days from publication. HUD believes the changes will extend critical benefits to aspiring homeowners and confirm the agency is properly serving the public.
During MAR’s most recent existing home sales report, June condo sales closed down 13.8% and the median price of condos saw an 8.4% increase.