THIS IS HUGE - READ IT !!!! - Thanks Karen
Via
Karen Parsons-Fiddler (Great Western Realty Group):
I'm looking forward to the day I wake up and find good news in my inbox about financing....but it's probably a long time away yet. This morning I found a pdf from my lender on FHA financing. The bottom line is that beginning October 1st, 2009 we are going to find FHA condo loans almost impossible to fund, and listing agents are going to have to recommend that sellers do not take FHA offers.
The basics:
* Spot approval for condo projects will be eliminated
* All current condo approvals will be invalid and must be re-approved (unless the approval was done 10/1/08 or later)
* Projects must have no more than 10% of project owned by any one investor
* No more than 15% of owners can be in arrears (more than 30 days past due) with HOA dues
* 50% must be owner-occupied
* No more than 30% of the units can be insured by FHA
* Condo projects undergoing remodeling or improvement must be completed (including common areas) before FHA will approve project
* Condo project approval expires every two years and requires recertification
The backlog on new FHA loans is going to be tremendous!!!
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