Rusty Bradshaw wrote an article on July 6, 2017 for the Independent in which he explained FHA has approved lending for condos in Sun City. That announcement, originally from Sun City Rec Center representatives has caused some to be confused as to whether single family homes in Sun City can also receive FHA financing.
First, understand the presumed condo approval is under 12 CFR 1228. That section is specific to condos. FHA has apparently verbally told Sun City Rec Center management the condo transfer fees, including Rec Center fees, would be acceptable under the 12 CFR 1228 provision that private transfer fees are used to directly benefit the encumbered property. Sun City is still awaiting the Mortgagee Letter confirming this change.
As to the Free Assumability provision, that is still in force for homes in Sun City. Lynette Jorden, PRMI Primary Residential Mortgage, emailed me this response from FHA this morning:
FHA/HUD has not lifted the ban. If and when any changes occur, FHA will issue a mortgagee letter to the industry
So, there you are. Nothing has officially changed for condos or single family detached homes. Watch the Mortgagee Letter releases going forward to confirm any changes.