In November the Federal Housing Adminstration (FHA) accounded the permanent baseline guidance for condominium project eligibility.  (ie the guidelines they would use when determining if they will allow an FHA loan to be made in a complex)  While they have delayed implementation until I beleive December 7th of 2009 and they may change again before being placed into effect, here are the most common one which will effect condominium buyers in Sacramento:

1.  No more than 50% of the units in the complex can be financed with an FHA loan. 

There are exceptions to this such as if the complex is 100% finished and has been completed for at least a year, 100 percent of the units have been sold and no entity owns more than 1o percent of the units, the project’s budget provides for the funcding of replacement reserves for capital expenditures and deffered maintenance in an account representing at least 10% of the budget. control of the HOA has been transferred to the owners and the owner occupant ratio is at last 50 percent.

2.  Owner Occupant Requirements

 At least 50 percent of the units must be owner occupied or sold to owners who intend to occupy the units. 

As more details of the FHA requirements are released, we will clarify and post them.  If you have any questions about lending issues in condominiums, please email us at info@SacramentoCondos.com

Bruce Slaton  Lic # 01305148

SacramentoCondos.com