New FHA Condo Rule Goes into Effect

The New Rule Is Years in the Making

 Department of Housing and Urban Development, FHA Programs, Financing and Credit

Published Thursday, October 17, 2019

Condo Buildings

A new FHA condo rule, which went into effect on Oct. 15, promises to open more doors for buyers and generate more business for members who can help condo associations navigate the new rules.

Long championed by the National Association of REALTORS®, the rule eases restrictions on FHA financing for condos, enabling more first-time buyers, older adults, and low- to moderate-income families to purchase a home. NAR will continue to work with FHA and Freddie Mac and Fannie Mae to insure that people who wish to purchase a condominium have safe affordable access to mortgage credit.

NAR has released an FHA Condo Rule Broadcast to explain the rule and its impact on REALTORS® and consumers in more detail. Members may also read the full FHA Condominium Rule Assessment via NAR.