Condo buyers are having a hard time obtaining FHA mortgages

Condo buyers are having a hard time obtaining FHA mortgages, and often it's down to the building's financial status, not the borrower's.  Since February 2010, the FHA have required that the whole building be deemed financially viable rather than just the single units, which has resulted in a proliferation of rejected buildings, a headache for condo sellers who rely on the FHA stamp of approval as a marketing mechanism, impeding the housing market's recovery. FHA regulations now dictate that buildings must be 50% owner-occupied, that no more than 10% of the units are owned by one entity, that no more than 15% of the units are 30 days past due on their monthly assessments, and that at least 10% of the association budget be set aside for capital expenditures and deferred maintenance.  The general consensus in the housing industry is that, given consumer demand for FHA-backed mortgages, the regulation is short-sighted.