In June 2011, FHA revised requirements that condominiums have to meet before agencies will insure mortgages. Condominiums are required to have no more than 15 percent of units more than 30 days past due with assesments. In addition to that requirement condominiums must have at least 50{0728698ad12cd7122aa8cf37b2a467797a4e0be40016be14bd5e6bc593ebb934} of all units occupied by owners and that the condo community be FHA approved before any agency will insure a mortgage for any unit within the comminuity.
FHA says the new requirements were necessary to ensure agencies could adequately back loans but the marjor issue is that many condominiums aren’t aware of the implicatoins of the new guidelines or even that there have been any changes made.
Due to the rough economic times condominiums are having trouble meeting the requirments laid out by the FHA because owners aren’t paying their assesments on time. Units continue to remain empty due to foreclosures.
