Ar_home_b_search
 

It has came to my attention that some agents and buyers are still unclear with the new condo changes that are coming up for FHA.  Deadline has been pushed from October 1st to November 1st, 2009.

 

In the past, you only needed to satisfy one of the following two criteria to finance a condo unit using FHA financing.

1.) The Condo Project has a FHA warranty

- This requires the Homeowners Association of the condominium project to apply and receive a warranty on the project from the HUD.

2.) The unit must pass a questionnaire called a “Spot Check” done on an individual basis

 

As of right now, after November 2nd 2009 FHA is voiding all condo project approvals that were done BEFORE October 1, 2008.  This means FHA loans will not be able to be done in an ineligible project until it is re-approved which will be a difficult and lengthy procedure!  A project approval will cost $1,500 and up and FHA is now going to require an attorney's opinion letter, which can be another $800 or higher.

Spot FHA condo approvals will no longer be allowed

  • This means that if you are a buyer or an agent with a condo client who wants to buy or sell FHA, you should get them to do it NOW. After November 2nd, the whole project will have to be approved for just one FHA loan and it will be a long and tedious process.

·         Project approvals are currently taking 6-8 weeks. If FHA holds to their current November 2nd rules, and some 55,000 condo projects nationwide have to get re-approved, who knows how long an approval may take.

Only 30% of the loans in any project will be allowed to be FHA loans

  • For example in a 30 unit project only 9 FHA loans will be allowed. Since FHA is the preferred program currently for most condo buyers, condo sales for the remaining 21 units will be difficult.

 

 

The official mortgagee letter is found here http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-19ml.doc  for more eligibility requirements

 

FHA Link to check if the condo is approved https://entp.hud.gov/idapp/html/condo1.cfm

 

For more information, contact: 

Justin Williams

Home Mortgage Consultant

Prosperity Mortgage Company

M8612-011

4701 Columbus Street Suite 300

Virginia Beach, VA  23462

(757) 490-9200 Tel

757-692-3464 Cell

1-866-922-5123 Fax

**************************************************************************************

realtor technology spotlight awardTina Merritt and her Associates. can be reached at email:  tina@nestrealtygroup.com or 757-287-6338.

Our Network consists of both buyer and listing specialists helping buyers and sellers in Southeast Virginia, Hampton Roads, Virginia Beach, Chesapeake, Norfolk, Portsmouth, Suffolk, Isle of Wight County, Hampton, Newport News and Poquoson, Virginia.  In Southwest Virginia, the New River Valley, Blacksburg, Christiansburg, Radford, Pulaski, Dublin, Floyd, Narrows, Pembroke, Pearisburg, Glen Lyn, Rich Creek, Check, Hiwassee, Indian Valley, Parrott, Newport, Shawsville, Pilot, McCoy, Long Shop, Fairlawn, Wythe, Draper, Willis, Sowers, Elliston, Eggleston, Ironto, Riner, Auburn, Rogers, Giles County, Montgomery County, Floyd County, Pulaski County.

Visit our website:  NestRealtyGroup.com

 

delicious icon digg icon facebook icon rss icon twitter icon technorati icon stumble upon icon flickr icon

 

 
This post has been included in Virginia Real Estate News Virginia Beach City County, VA Real Estate News Virginia Beach, VA Real Estate News
Post is included in group: Long & Foster Agent Lounge
Post is included in group: Mortgages
Post is included in group: Realtors®
Post is included in group: VIRGINIA

1 Comments on New FHA Condo Guidelines Pushed to November 1, 2009

OCT
23
2009
180,636 Points 6 Featured Posts Localism Sponsor Outside Blog Hit Router Called Shot Master

I find this whole thing completely confusing. Even after reading the document you linked to, I'm still clueless on how to determine if a buyer can get FHA on any given condo.  The HUD list is pretty useless too since it doesn't list properties by address and not many agents know the "name" of the development.  I'm ready to give up trying to get FHA buyers into condos unless I can get a clearer picture of which properties will be eligible. It's already tough to get a listing agent to look at an FHA offer. Seem the new rules will make it impossible.
8:51am • #1

This blog does not allow anonymous comments