HUD lowers FHA Owner-Occupancy Requirements For Condos #homeownership #realestate

Source:  Housing Wire

The U.S. Department of Housing and Urban Development's (HUD) announced that the Federal Housing Administration (FHA) will lower its owner occupancy requirements on certain condominium developments from 50 percent to 35 percent, provided the project meets certain conditions, effective immediately.

Under the new provisions, FHA approved condominium projects require at least 50 percent of the units to be owner-occupied, but will allow for the owner-occupancy requirement to be lowered down to 35 percent if the condo development is more than 12 months old and if:

- The project has replacement reserves of at least 20 percent of the budget,
- No more than 10 percent of the units are in arrears (more than 60 days past due), and
- The condo has three years of acceptable financial documents.

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