Owner occupancy rate in condos lowering

[Justin Kill]

This will probably take awhile to roll out, but FHA guidelines are supposed to be going down to 35% provided other requirements from my understanding. The condo has to go through some re-certification process to be approved. Any insight form someone closer to this matter (lender, condo person, etc.)? 

[Chris Mason]

If true, this is quite interesting. Here in the Bay Area, few condos have FHA approval. Which is kind of annoying, because condos are just about right for a lot of young people starting out that don't have the most stellar credit yet.

This change, paired with condos doing that FHA approval paperwork, has the potential to turn some "non warrantable condos" into condos that are financeable with traditional financing, bumping values for all unit owners.

I'd strongly suggest that anyone who currently owns a condo in a "non warrantable" HOA due to low owner occupancy, keep a close eye on this, and if you meet the 35% threshold then start getting active in your HOA to get them to do the FHA approval paperwork.

@Justin Kill, do you have a source or article we could check out? I don't follow FHA stuff as it pertains to condos closely since so few in my market are FHA approved.