FHA-insured mortgages help creditworthy first-time, minority, and underserved households achieve homeownership.

However, after the 2008 housing crisis, the FHA condominium approval process severely impacted access to these mortgages, shutting many out of condo homeownership. 

In fact, condominium unit mortgages currently account for less than 2% of all FHA-insured mortgages.

The FHA recently announced changes to streamline their condo project approval process and expand homeownership for many Americans. 

Important elements of the newly released approval process include:

  1. As long as the condominium is financially stable, the FHA will insure up to 10% of mortgages in condos without FHA approval.
  2. FHA approvals for condominium projects will be expanded from two years to three years.
  3. Condo projects seeking recertification will no longer be required to resubmit all project information. Instead, they will only be required to update new information.
  4. Mixed-use condominium projects with up to 45% commercial space will be eligible to apply for approval.
  5. The FHA will insure up to 75% of condo unit mortgages in a condominium project.

To learn more, click here.