FHA Changes Condo Recertification Requirements

The Department of Housing and Urban Development recently released a new mortgagee letter, 15-27, which relaxes the requirements when condominiums seek to be put on, or recertified on, the FHA approved condominium list.

For projects already on the list, they only have to submit documents which have changed substantively since prior approval.

The guidelines for determining whether the condominium meets the 50% owner occupancy has been modified, making it easier to meet the guidelines.

Finally, insurance policies that consist of pooled policies for related projects and those policies that require coinsurance obligations now qualify.

The guidelines are good only for one year, after which time FHA is expected to issue more comprehensive changes to the FHA condominium approval process.

© Steve Sowell 2017