The Federal Housing Administration may ease regulations on condominium properties that have prevented homeowners from receiving its low down payment insured mortgages, according to Telegram.com.
Regulations on condominiums led many homeowner association boards from seeking FHA approval. The agency limited mortgages to individual condos that were part of a property that was approved for financing.
Many realty agents and condo experts say the FHA rules have become too strict and have left homebuyers without an ideal low-cost mortgage, according to the article.
Barely 25 percent of all condo projects that are potentially eligible for FHA financing are now approved, Christopher L. Gardner, managing member of FHA Pros, LLC, told Telegraph.com.
Gardner says the FHA financing is the No. 1 mortgage choice for half of all condo buyers and is crucial to first-time and minority purchasers.
Some of the criticized regulations include a non-owner occupancy rule that requires that no less than 50 percent of the units only contain renters. Another prevents condo properties from having more than 25 percent of their floor space for commercial use.