The Federal Housing Administration (FHA) announced the publication of its Condominium Project Approval Final Rule effective with new case number assignments on or after October 15, 2019.
For more information, please read the press release issued by the Department of Housing and Urban Development (HUD).
Kentucky Mortgage loans done through FHA’s new condo rule and the new Condominium Project Approval section of the Single-Family Housing Policy Handbook were designed to be flexible and responsive to market conditions, and provide a comprehensive revision to Kentucky FHA condominium project approval policy. In particular, the new policy will allow certain individual condominium units to be eligible for
FHA mortgage insurance, even if the condominium project is not FHA approved. These policies became effective on October 15, 2019. Read FHA’s new condominium approval regulation.
The Legacy “Spot Condo” is Now Single Unit Approval
Effective for case number assignments on or after October 15th, 2019, Kentucky FHA borrowers may obtain Single Unit Approval (SUA) on non-FHA approved condominium properties that meet eligibility requirements (detailed below).A Significant Kentucky FHA First-Time Buyer Opportunity for Condo Lovers!
- As a result of Kentucky FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
- Condo projects that are not currently on Kentucky FHA’s list of approved condos may be eligible for an FHA Single Unit Approval.
- Target opportunities include previously approved projects that are now expired or were never approved.
Kentucky FHA Single Unit Condo Eligibility
- At least five units
- 10 or more units, up to 10% may be FHA-Insured
- Less than 10 units, up to two FHA-Insured units
- At least 50% owner-occupancy
- HOA Budget 10% reserve requirement (or amount supported by reserve study)
- Applications must receive an Accept from TOTAL Mortgage Scorecard or have a maximum 90% LTV for an Accept Risk Classification requiring a downgrade to Manual Underwriting.
- Maximum of 35% commercial space
- Maximum 10% individual ownership
- Has a Certificate of Occupancy that was issued at least one year ago or has been occupied
- Manufactured homes, gut rehab or new construction is not eligible
- No more than 15% of units are 60 days delinquent
- Not located in an approved condominium project or unapproved phase of a condominium project with an approved Legal Phase in HOA dues
Text/call: 502-905-3708
fax: 502-327-9119
email: kentuckyloan@gmail.com
Kentucky FHA Mortgage Lender 
Reblogged this on Kentucky First Time Home Buyer Loan Programs for FHA, VA, KHC, USDA, Mortgage Loans in Kentucky for 2019 and commented:
FHA to make financing easier for condo owners in Kentucky
FHA Condo Approval Kentucky