Late last year, the Federal Housing Administration issued a letter with new condominium lending policies that went into effect in December. The letter limits the number of condo units in one complex that can be financed with FHA-insured loans at 30% and 50% of the units must be owner-occupied before FHA financing can be used. Also, for the first time, the new condo lending policies give lenders the authority to approve condominium projects directly. Since that time, both the Veteran’s Administration and Fannie Mae have reacted by indicating that they will no longer allow FHA approval of condominiums on VA loans and Fannie Mae Conforming Loans. This means that the condominium must be approved separately by VA and Fannie Mae before homes in that complex can be financed using these programs. Because of the lower prices of condominiums, this form of ownership has been very popular with first time buyers and this restriction will make it more difficult with regard to paperwork. Dave Hershman is the top author and a top speaker in the mortgage industry with seven books authored including two texts published by the Mortgage Bankers Association of America.