Good News for Twin Cities Buyers and Sellers: Relaxed FHA Approval Rules to Boost Condo Sales
Relaxed FHA Condo Approval Rules Will Ease Mortgage Hurdles, Boost Sales
The U.S. Department of Housing and Urban Development just updated its guidance on FHA condo loans, to:
- Allow for “spot” mortgage approvals so FHA can insure individual condos, even for properties without FHA approval.
- Allow more renters to be in the properties that FHA will finance.
- Extend FHA-certified status for condo properties from 2 to now 3 years. Condo boards will be more likely to embrace the process that makes ownership more accessible.
This will make FHA loan approval, and affordable down payments, within reach to many more hopeful buyers. As the National Association of REALTORS® observes, condos might be an affordable options in urban areas. The new rules might bring opportunities for buyers pertaining to purchasing a Twin Cities condo or loft.
HUD’s new guidance is expected to take effect in mid-October.
This is truly exciting news. We look forward to a rise in condo sales in the coming year.
Why the New Rule? Creating More Inclusive Policies for Urban Development
HUD’s just-published guidance addresses what the Supreme Court calls the disparate impact standard. What does this mean?
- HUD is clearly banning real estate practices with unintended discriminatory effects.
- Under the Fair Housing Act, real estate policies and local laws may not exclude people — not even unintentionally.
Noting today’s lack of affordable housing, HUD Secretary Ben Carson stated that the new rule “increases Americans’ access to fair and affordable housing” and “permits businesses and local governments to make valid policy choices.”
If you have questions on how to negotiate condos for sale in Minneapolis, St Paul or the surrounding areas, I’m here to help. Contact me to get on the path to Twin Cities condo or loft hownership!
Shannon Lindstrom, Realtor