FHA Condo Approvals – Clarification of “Site Condominiums” - 08/19/11 02:15 PM
FHA Condo Approvals – Clarification of “Site Condominiums”
Prior to the release Mortgagee Letter ML11-22, HUD had exempted so-called “Site Condominiums” from the requirement to become approved in order for FHA financing to be allowed within the project.  ML11-22 clarified what a Site Condominium is in order for it to not be required to obtain HUD’s approval.
Site Condominiums are condominium projects that meet ALL of the following requirements:
Units are encumbered by a condominium declaration/covenant or condominium form of ownership. Units are single-family and completely detached from each other.  This includes garages, archways, breezeways/porches/decks or any other attached buildings. A … (2 comments)

FHA Condo Approvals – Who May Submit an Application for Condominium Project Approval - 08/05/11 01:53 PM
FHA Condo Approvals – Who May Submit an Application for Condominium Project Approval
In the recent Mortgagee Letter, HUD clarified who may and may not submit applications for approval of a condominium project.  Previous to the release of the Mortgagee Letter, HUD did not place limitations on who may submit applications.
HUD now limits the submission of applications to:
Builders/Developers Homeowner’s Associations (HOA) Management Companies (MC) Project Consultants Attorneys acting as an agent for the developer/builder, HOA or MC HUD will not process applications directly from:
Borrowers Homeowners Sellers Real estate agents HUD does say that it “may determine, on a … (2 comments)

FHA Condo Approvals - Investor Ownership - 08/04/11 12:48 PM
FHA Condo Approvals – Investor Ownership
In processing applications for condominium project approval, HUD looks at a couple of different facets regarding Investor Ownership.  HUD’s Mortgagee Letter ML11-22 clarified and modified certain aspects of how it reviews Investor Ownership.
Investor Concentration
The first of which is that the concentration of Investor Ownership may not exceed 49% of the total units within a project.  HUD desires that the majority be comprised of owners who reside in the units within the project.  No changes were made here via ML11-22.
The 10% Rule
HUD also places a restriction that no one investor/entity may own more … (2 comments)

 
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Eric Boucher - The FHA Condo Approval Guy

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