News broke Thursday at the National Association of Realtors® conference kick-off that big changes are coming to the way FHA handles the treatment of condominiums.
Principal Deputy Assistant Secretary Ed Golding of the Federal Housing Administration joined NAR President Chris Polychron before a packed ballroom of Realtors® and industry experts for a quick Q&A.
There, Golding announced that FHA will soon make changes to their condo policies including FHA’s recertification process, owner-occupancy requirements, and the decision to make insurance products like pooled policies, co-insurance, and state run policies eligible for FHA support.
Polychron hailed the news following the event. “This is a win and a tremendous step in the right direction,” he said. “NAR applauds HUD Secretary Julian Castro and FHA Principal Deputy Assistant Secretary Edward Golding for taking action to improve access to credit for condos.”
NAR worked closely with the Department of Housing and Urban Development to advocate for changes to FHA condo policy. Chris Polychron also recently testified before Capitol Hill to highlight the need for change, including policies related to recertification and owner-occupancy requirements.
“Condos are often the most affordable option for homebuyers, especially first-time buyers, and making sure FHA financing is an option is important to supporting homeownership,” Polychron said.
Golding noted that changes related to insurance and recertification are effective immediately as part of a Mortgagee Letter released this morning. Meanwhile, major changes related to owner-occupancy, commercial space percentage, FHA concentration, and spot approvals will be addressed later through a formal rule-making process.
“This is a win and a tremendous step in the right direction. NAR applauds HUD Secretary Julian Castro and FHA Principal Deputy Assistant Secretary Edward Golding for taking action to improve access to credit for condos,” said Polychron. “We look forward to working with them again in the future to help more Americans achieve the dream of homeownership.”