A condominium project has 85% of its units sold to owner-occupants and 15% to investors. The project has been approved by FHA for 2 years. A borrower wants to purchase a unit with an FHA loan. What additional requirement must be met?
Correct Answer
B) No additional requirements - the loan can proceed
FHA requires at least 50% owner-occupancy in approved condominium projects. Since this project has 85% owner-occupancy and current FHA approval, no additional requirements are needed. The project approval is valid for 2 years from the approval date, and owner-occupancy ratios are monitored but don't require specific maintenance actions for individual loans.
Why This Is the Correct Answer
FHA requires at least 50% owner-occupancy in approved condominium projects. Since this project has 85% owner-occupancy and current FHA approval, no additional requirements are needed. The project approval is valid for 2 years from the approval date, and owner-occupancy ratios are monitored but don't require specific maintenance actions for individual loans.
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