Due to the declining housing market and recent problems in the credit markets and housing industry HUD has come up with new underwriting requirements. They have tightened up the restrictions for condos to be included in the approved FHA Requirements list. The FHA requirements have changed multiple times over the past few months and may continue to do so. At a minimum the lenders want to see that the association has a separate reserve account and that they are contributing to it on a monthly basis. It is important that associations have a current (less than 12 months old) reserve study so that all lending options are available to potential buyers.