FHA Reduces Condo Occupancy Requirements to 35%

On Oct. 26, 2016, HUD issued a mortgagee letter making changes to the Federal Housing Administration's (FHA) owner-occupancy requirement for condominiums as a result of the Housing Opportunity Through Modernization Act of 2016 (HOTMA). Under the new provisions, FHA approved condominium projects will allow the owner-occupancy requirement to be lowered down to 35% under 3 conditions (a) The project has replacement reserves of at least 20% of the budget, (b) No more than 10% of the units more than 60 days past due with their fees, and (3) The condo has three years of acceptable financial documents.Be an expert in your market when you work with david-carr.net. The Foundation of Your Success in Real Estate since 1996. I'm here to help you make the right move when the time is right for you