Tougher rules that will determine which condominium developments will qualify for low-interest Federal Housing Administration mortgage loans are scheduled to go into effect Nov. 2.
Under the new FHA rules, a condo development must be 50 percent sold out with no more than 10 percent of the units owned by a single individual. In addition, no more than 15 percent of the homes in the complex can have payments that are past due.
The highest use of FHA financing in the United States is reported by Northern California builders, according to a report Monday by Irvine-based John Burns Real Estate Consulting on government loan program impacts on new home sales.
FHA tightens condo lending rules
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