HI SCR125

FHA requires approval of condominium projects in addition to borrower qualification for mortgage insurance, creating a more complicated process than conventional or Veterans Benefits Administration financing.

January 2018 median home prices in Hawaii were $772,000 for single-family residences and $430,000 for condominiums, making homeownership difficult for first-time buyers.

Condominium units comprise a large percentage of Hawaii's housing stock with thousands of new units projected to be built, yet few projects gain FHA approval.

First-time homebuyers in Hawaii often qualify only for FHA lending but are prevented from using FHA financing on projects lacking FHA approval, while conventional and VA financing remain available on the same projects.

Requests that the Federal Housing Administration amend its regulations to reduce barriers to condominium project approval to increase mortgage financing availability for first-time homebuyers.