FHA rules will deny condominium mortgages if anyone owns more than 10% of the condo development or if more than 50% of units are rented.
Unfortunately these rules also prevent people from refinancing their existing mortgages on condominiums in developments where one of these rules is not met.
FHA should allow people to refinance their existing mortgages to lower their interest rate despite the existence of these rules.
Such a change would be aligned with the existing "We Can't Wait" initiative on mortgage refinance: http://www.whitehouse.gov/blog/2011/10/24/we-cant-wait-help-homeowners-r...