The Federal Housing Administration has announced it will be extending its condo approval guidelines through 2016, the administration announced through mortgagee letter 2014-17 this week.
There will be no changes to condo lending guidelines under the FHA from the most recent guidelines published in mortgagee letter 2012-18, FHA stated.
Under the changes included in the 2012 mortgagee letter, condo lending requirements were eased slightly for lenders. FHA specified at the time that no more than 15% of the total units in a condo project can be more than 60 days past due on association fee payments and that at least half of the total units in the project must have been conveyed or be under contract for purchase to owner-occupied residences.
The changes were welcomed by community associations following the announcement.
The extension announced by FHA this week will keep the current guidelines in place until August 31, 2016.
Written by Elizabeth Ecker