On September 13, 2012, FHA issued Mortgagee Letter 2012-18, putting in place a few temporary condominium project approval guideline changes, effective through August 31, 2014. Among the guidelines affected is the maximum percentage of non-residential space permitted in the project to qualify for FHA financing.
Under the previous guideline, no more than 25 percent of the project’s floor area could be used for non-residential or commercial purposes. FHA has now created four classes of mixed-use condominium projects: