FHA ........ Major Condo Approval Change!!!

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FHA ........ Major Condo Approval Change!!!

Back on June 16 of this year I wrote a blog "FHA ........ Major Condo Approval Change!!!" which covered the New FHA Condo Approval Process that was to go into affect on October 1st of this year. Well FHA has just made it known that the New Condo Approval Process will now not go into affect until November 2nd. This means that we have an additional month now to be able to do "Spot Condo Approvals" instead of a "Full Condo Complex Approval" on Condo Complexes that are not presently on the FHA Condo Approval List.

A quick recap of what the major changes will be to the new process are:

FHA will now allow lenders who are "Direct Endorsement Lender" to determine project eligibility, review project documentation, and certify to compliance of Section 203(b) of the NHA and 24 CFR 203 of HUD’s regulations.
An Environmental Study will no longer be required in most cases.
The Right of First Refusal will not longer be an issue.
Spot Condo Approvals will be eliminated.

I will try to keep everyone informed on any further changes or delays to the New FHA Condo Approval Process as I am made aware of them.

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Info about the author:

George Souto is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

Posted by George Souto on 09/16/2009 02:41 PM

Comments (21)

FHA Condo Approval Process in the Mortgage / Finance Channel

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Originally posted at: George's Blog: FHA ........ Major Condo Approval Change!!!

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21 Comments on FHA ........ Major Condo Approval Change!!!

SEP

2009

George, I am so glad you Blogged about this, I've been trying to get the message out.

George, thank you! I had been thinking about this!

George, I've read the HUD Mortgagee Letter 09-19 and I have to tell you, there are some big changes with how condos will either be approved, or not. I'm going to sit down with my trusted FHA lenders to go over it line item by line item so that our buyers are better served.

Thank you for the post. I just printed the Mortgage Letter myself and will be reading that in the morning. I am glad they gave the extra month!

George,

Looks like FHA is giving mortgage lenders more time to get organized for these changes. So much is going on that everybody scrambling to keep up.

Debbie I have been keeping my eye out for it because I had a feeling that they were going to delay this.

Andrea, they waited long enough to put this news out.

Kris, there is a lot in that Mortgagee Letter, but I got a feeling that they are not going to go through with all of those changes, and I hope that the "Spot Approval" is one of the things they reconsider.

Jeremy that makes two of us that are glad that we have atleast one more month.

Esko, the extra time is very much appreciated.

George thank you for the information, we do need to keep ourselves up to date on all these changes.

George,

More changes... I love changes, it keeps everyone on their toes. Slows the process.......

Ann

SEP

2009

George,

What about condo questionnaires? Will they still be looking at the renter to owner ratios? Is there still an issue with approving certain complexes?

Deeba, that is very true, especially with all of the changes that have been coming down.

Ann, well I don't know if I love the changes, but you are right about them keeping us on our toes. I am just trying to keep mine from being stepped on :) :)

Neal, the questionnaire verifying the owner-occupied/investor percentage will still apply as will the rule that no more than 10 percent of the units may be owned by one investor. The questionnaire that will no longer apply if these new guidelines go into effect is the two page questionnaire for Spot Approvals.

George Thank you for keeping us informed on the latest mortgage products.

George,

I am certain you will not be stepped on....

Ann Hayden in cool Wildwood, MO

SEP

2009

We can always count on you to give us first hand information on changes and updates about mortgages... very helpful. Thanks George!

Jennifer, thank you. I try :)

Ann, I am trying hard not to be.

Diane, if we all share what we know, then all of us will be better for it :)

George,

It would take something or someone very tall to step on you...like Paul Bunyan.

Ann

George,

It would take something or someone very tall to step on you...like Paul Bunyan.

Ann

SEP

2009

Ann :) :) :)

SEP

2009

George.. This is great news. This will help *our* client I am working with right now, ALOT!!! Thanks for the good news. Hope you had a great weekend.

valerie osterhoudt

George,

I wouldn't want ti be a DE under writer!

It's going to be very intresting until this all gets resovled.

Bill

Valerie this buys us a little more time on the Spot Approvals.

Bill, we would be able to do the Condo approvals ourselves, but we will most likely not do that. We will probably help Condo Associations put the packets together for approval and submit them to FHA for them.

OCT

2009

Thanks for the update and the informative posts. We will see if HUD makes changes in the rules before the final implementation. As they stand now these rules are a ton of paperwork especially burdensome for a small association, say 4 to 10 units, which we have plenty of here in CT. I reblogged your post, thanks!

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George Souto

Middletown, CT

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George Souto NMLS# 65149 FHA, CHFA, VA Mortgages Connecticut

Address: One Liberty Sq., PO Box 1000, New Britain, Ct, 06050

Office Phone: (860) 573-1308

Cell Phone: (860) 573-1308

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