2nd Homes and HUD Condo Approval Requirements


We have received a couple of request for assistance in procuring FHA approval for HOAs that have large 2nd home populations. The HOAs are counting these 2nd homes as owner occupied as they were not rented or leased and only the owner occupied them. Let’s address this question.

Regarding this issue in an email to us HUD says:

“At this time Second Homes do not qualify as owner occupied units.”

As per 24 CFR 203.18 (f) a Secondary residence means a dwelling:

(i) Where the mortgagor (owner) maintains or will maintain a part-time place of abode and typically spend (or will spend) less than a majority (Less that 50.1%) of the calendar year.

(ii) Which is not a vacation home

(iii) No applicable to FHA Condo Approval

Basically HUD maintains that if a homeowner is not living in the condo for at least 50.1% of the year that unit cannot be counted as owner occupied  when calculating the over 50% owner occupied requirement.

I hope this clears up the 2nd Home or Vacation Home questions. If you have any FHA Approval questions feel free to contact us at (800) 833 0409 Ext 1.

The FHA Condos Approval Company, Inc.

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