HUD just changed its condominium rules again, and there’s both good news and sobering news for investors and developers tucked away in the revisions. On the one hand, HUD relaxed its previously controversial requirement that at least fifty percent of the units in a project be sold before FHA could insure loans for new buyers on individual units.

Under the amended rule, FHA financing will be available in projects where at least 30 percent of the existing units have been sold. That change is important, say developers and investors, because many newly-constructed projects have had trouble pre-selling units in the current tough real estate market.

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