As regulations tightened after the housing crash, the number of FHA mortgages for condos fell from 72,900 in 2010 to 16,200 last year.
The rule change is expected to increase the number of FHA mortgages for condos by 20,000 to 60,000 units.
Wider availability of mortgages could increase construction by 7,000 condos, according to an analysis last year by HUD.
It’s unclear just how much the expansion could increase the U.S. home ownership rate, as prices have risen faster than incomes and the inventory of homes on the market have been below historical averages.
For moderate-income buyers, the FHA has historically been the go-to mortgage option. Over the years, it has proved to be a key instrument for African American and Latino buyers, many of whom have made their first purchase in a condominium development, as well as seniors seeking reverse mortgages.
Source Publication:
Los Angeles Times
By: Associated Press
Link: https://www.latimes.com/business/story/2019-08-14/fha-condo-rules