Condos across the country will lose their FHA approval in Dec 2010. If they were approved after Oct 2008 they will NOT lose their approval status until 2012 but at that time will have to go through a new reapproval process in 2012. For those Condos approved prior to Oct 2008 will have to go through a new approval or re-approval. As mentioned FHA is currently back logged doing approvals. They are taking as long as 120 to 180 days.
Condos that ARE NOT currently on the FHA approved list are still allowed to have spot approvals done until Feb 2010 after that Spot Approvals will no longer be allowed. If the complex was never approved before they will need to go through a full approval which as already mentioned FHA is backlogged.
There are reserve requirements, owner occupancy requirements, and number of allowable FHA loans in that same complex guides. Projects of three or less units cannot have more the one FHA-insured unit, and projects of more than four cannot have more than 30% of total units insured by FHA. But temporarily, the FHA will increase its concentration requirement to 100% through the end of the year if the project meets all standards. http://www.housingwire.com/2009/11/20/fha-condo-financing-evaporating/
PUDs (planned development units) and SFR (single family homes) do not need to be "approved" by FHA to allow for a loan. The only thing that FHA requires for PUDs, SFR, and Townhouse is that the property be safe, sound, and secure. No inspect reports are required nor are section 1 reparis required. I know many lenders are overlaying their own requirements for FHA and requiring section 1 but this IS NOT A FHA RULE. The only time section 1 repairs are needed is when the appriaser makes some note in the appraisal that there is some evidence of termite infestation, dry rot, or other possible things that but the safety and soundess of the property at risk.
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