FHA is doing away with the condo review process as it now stands.
Starting February 1, 2010 there will be two ways for a condo complex to get approval for FHA lending known as HRAP and DELRAP.
HRAP stands for HUD Review and Approval Process. The HOA has to put together information and send it into HUD. The problem of course is in getting the Homeowner or Condo Association to actually compile the information and submit it to HUD and of course HUD like most government agencies is not exactly quick on their part.
DELRAP stands for Direct Endorsement Lender Review and Approval Process. Under this approach the lender endorses the condo complex. They must prove to HUD that the condo complex should be approved, but the kicker is that the endorsing lender then becomes responsible for all loans no matter who funds the loans.
What is the chance that any lender will ever endorse a condo complex if they are totally responsible for all loans given? Likely none.
As a Realtor it will be extremely important starting February 1st to find out whether HRAP or DELRAP approval has been received. Imagine the time you and your buyer could be wasting if it has not been received or even been applied for.
If I can assist you in finding the right Tampa home for sale please feel free to contact me at 813-469-3163 or Jeff@MakeTampaYourHome.com.
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