(RECAP: The FHA hasn’t gone far enough in relaxing its rules on borrowers seeking an FHA loan for a condominium, according to the National Association of Realtors (NAR). In a letter this week to FHA’s overseer HUD, the trade group took issue with a policy that requires a condo complex to meet a minimum owner-occupancy threshold to be eligible for FHA lending. NAR also questioned the agency to do away with a rule that limits the concentration of FHA loans to half the units in a complex. NAR said that FHA should impose no fixed owner-occupancy levels, but consider every project on a case-by-case basis. The trade group also said that the agency should allow a concentration of FHA loans of up to 100 percent of the units in a complex. The trade group cited FHA data that suggest condo loans have been performing better than the average single-family loan and so shouldn’t be considered riskier than single-family loans.)

Powered by WPeMatico