Proposed FHA Rule Adds Condos to Home Equity Conversion Mortgages
Individual condo units could become eligible for Home Equity Conversion Mortgages (HECMs) under a new rule proposed today by the Federal Housing Administration (FHA).
The proposed rule would reinstate single-unit approvals in condo developments that currently are not FHA approved. The proposed FHA rule also would change other approval standards, such as minimum owner-occupants in approved condo projects and limits on commercial and nonresidential space.
The Department of Housing and Urban Development says the proposed FHA rule “would be more flexible, less prescriptive, and more reflective of the current market” than its present requirements. HUD says the proposed rule regulates where necessary to ensure projects are viable but offers flexibility to respond to market conditions.
Reverse Mortgage Daily has the details on the proposed rule in their article, “New FHA Condo Rules Expand Access to Reverse Mortgages.”