John Picken2

FHA eases regulations on condo requirements

In an attempt to support the current condo sales market nationally, the Federal Housing Administration has relaxed some of the regulations on condo sales nationally. This will affect the Chicago condo market in subtle ways. The main changes that will affect the area are:

  • Up to 15% of a condo’s units can be delinquent on their association dues for up to 60 days. Previously, it was 30 days. The FHA will restrict financing to condominiums that have at least 50 percent of their units occupied, and will offer no financing for condo developments with more than 15 percent of their units in serious delinquency.
  • For buildings completed more than a year ago, 50% of the units must be owner-occupied.
  • Previously, a single investor was not permitted to own more than 10% of a development’s units. The new regulations expand that to 30%.

If you’re a current condo owner or in the condo market and you’d like to discuss what these changes mean to you, contact us! We’d love to discuss it with you and talk about your buying or selling options.

Photo courtesy of Flickr user John Picken