I don't know if everyone is aware of it or not, but there are big changes coming to the way  FHA will insure condos as of October 1st.

After reading HUD mortgagee letter a couple of things stand out that  I know will affect my  Macomb County MI condo buyers, and they may or may not affect your local condo buyers:





**"...  the lender must avoid or mitigate the following conditions before completing its review process..:


1.    The project is located in a Special Flood Hazard Area designated on a Federal Emergency Management Agency flood map.

2.    Potential noise issues, where the property is located within 1000 feet of a highway, freeway, or heavily traveled road, within 3000 feet of a railroad, or within one mile of an airport or five miles of a military airfield."

Oh my.  Talk about throwing a monkey wrench in to condo buying (and selling a condo!)  You can't move a military base or an airport, and you surely can't move a whole condo complex.   In my area we have Selfridge ANG (photo above)  as well as DTW (Detroit Metropolitan Airport).

We have hundreds if not thousands of miles of heavily traveled roads.  

As Michigan is the Great Lakes State we also have many areas within the FEMA designated flood plains. 

The months after October 1st are going to be very interesting as the mortgage lenders and buyers agents try to figure out which condo complexes will pass FHA muster and how to help our buyers purchase a condo with financing other than FHA.

We may want to sit down with our mortgage lenders prior to the end of September to go over other options for our home buyers.



**Quote courtesy of HUD from their Mortgagee Letter 2009-19**


                                               Kris Wales - Macomb County MI real estate
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