Condos are a popular starter home choice for young adults -- particularly those with challenging careers who prefer lower maintenance and shared amenities offered in condos. This is a good thing, as these tend to be more densely located and can more easily fit into mixed-use developments near transit corridors and areas with a vibrant urban lifestyle.
So why are we putting such prohibitive rules on condo developments for both FHA borrowers and conventional borrowers? While a condo subdivision has the ability to maintain its own HUD certification for FHA borrowers, we know that most do not. This means that the real estate industry generally dissuades prospective buyers from buying condos and, in turn, arguably dampens the value and overall desirability of condos. Please make it stop.