However, the FHA has made very drastic changes to its rules. Over the past few months, many buyers have expressed interest to purchase a condo in Downtown Miami using FHA financing. The easiest way to get a loan is to purchase in a FHA approved miami condo building, but the FHA also had a "spot approval" process where you could get a loan in a non FHA approved building. Under the new guidelines:
- "Spot approvals" are eliminated, and now the entire project has to meet FHA approval before a borrower can get an FHA-insured loan.
- A maximum of 30 percent of the condo project's units can have FHA-insured mortgages. There was no such limitation previously.
- Before the FHA will insure a mortgage on a condo, at least half the units must have already been sold. Again, there was no such limitation previously.
Both policies go into effect Nov 1.