The Federal Housing Administration’s Expired Condo Rule is an important tool for homebuyers in many parts of the country. By allowing buyers to purchase condominiums that are no longer certified by the FHA, the rule has opened up the possibility of home ownership to many more potential buyers.

First, the Expired Condo Rule allows buyers to purchase condominiums that are no longer approved, or "expired" by the FHA. Depending on the region, a large number of condominium projects have not been approved for FHA financing due to a number of reasons, including a lack of investor interest, a refusal of certain required documents from the developer, or developer bankruptcy. This presents a significant barrier for potential buyers who need an FHA loan to purchase a home in these regions. The Expired Condo Rule has removed this hurdle by allowing buyers to purchase these "expired" condominiums through an FHA loan.

Second, the Expired Condo Rule reduces the risk of buyers defaulting on their loan. Condominiums that are FHA-approved are vetted by the administration, and must meet certain requirements to be eligible for FHA financing. By buying an expired condominium