I normally write blog posts that are geared for my local consumers (Macomb County MI) but this one is going to affect all of us who have buyer clients using FHA for their mortgages and condo purchases.  (Please read HUD Mortgagee Letter 09-19 , HRAP/DELRAP, for all the specific details of the way HUD will approve - or not - a condo complex.) 

One of the websites that I rely on when looking for condos for my home buyers is  https://entp.hud.gov/idapp/html/condlook.cfm .  It's a nice look-up site for buyers and their agents to find out if a condo complex has been approved by HUD for FHA home buyers. 

Just a bit ago I went to the above site to look up a condo complex in my area because a new listing popped on the market that matched my buyers criteria and noticed that HUD had changed their screen/search function to reflect the changes that are coming to their approval process.  We now are being prompted in the first drop down box to search for HRAP/DELRAP approved condos, or pre-HRAP/DELRAP condos:


Condominium Approval Method
 
•    HRAP/DELRAP: New HUD Review and Approval Process (HRAP) or Direct
     Endorsement Lender Review and Approval Process (DELRAP).

•    Pre HRAP/DELRAP: Former approval process.

 Revised: September 1, 2009

**My understanding is that the new HUD approval process doesn't begin until October 1st, 2009 but it appears that HUD is ramping up for it.  You may want to check with your favorite mortgage lenders to find out if their underwriting process is going to make these changes before the October 1st deadline, as we saw with other program changes that started to take affect before "deadlines" actually occurred.  I'll be checking with my mortgage partners tomorrow so that there aren't any surprises for my current condo buyers.**

This year has been full of fun changes to our industry, hasn't it?

Another blog article a bit more specific about the changes coming to condo purchases using FHA mortgages:  Heads up everyone - we could be in for some fun!