The FHA has come up with some new rules when it comes to their loans.
Beginning April 2010, the up front mortgage insurance will increase from 1.75% to 2.25%
There will be no more spot appraisals. So it will be harder to get an approval on a condo.
This is a big one. Effective for all case numbers issued on or after February 1 of this year, all previous FHA condo approvals will be eliminated and condominium projects must be recertified by HUD.
You can pretty much forget about buying a condo until the project has been blessed by HUD or one of HUD's approved lenders.
Going forward there will be two approval methods for FHA Case numbers ordered after February 1, 2010;
Hud Review and Approval Process (H-RAP)
DE Lender-Approval and Review Process (DEL-RAP)
On another note>>>
For all purchase contracts dated after February 1st, 2010, FHA has waived the flipping rule.
Private Sellers & Investors can now sell their properties to FHA buyers without having to wait 90 days.
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