All FHA Approved Condominiums have expired as of Dec. 7th and the FHA will start a new list from scratch. What does that mean?
· Lenders who are FHA certified or Direct Endorsement Authority (Both of our preferred lenders are approved) will approve/re-certify condos that meet the FHA condo requirements such as:
1) 51% Owner/Occupancy
2) No more than 15% of the association delinquent on their maintenance fees
3) No litigation
4) AOAO’s has sufficient reserves, operation budget & insurance
5) One entity can’t own more than 10% in the condo project.
· Once the condo is approved the lender will submit this to HUD (Housing and Urban Development) and they will post that condo on the approved list. That condo will not need further re-certification for future purchases.
· If the lender is not FHA certified they will need to submit their condo packet to HUD and wait for approval.
· Going forward with future transactions, Realtors & lenders will need to do a bit more homework on prospective condos even before the prequalification stage. Additionally, contact dates will need at minimum 45 day closing to 60 day closings.
The bright side is that condos that were not FHA approved prior to December 7, 2010 that posses ALL of the FHA requirements can now be more easily FHA approved. Now we have the opportunity to have more FHA approved condos to select from. Both buyers and sellers will win from this.
Tana Feeley Senior Vice President Honolulu HomeLoans 745 Fort Street, Suite 1001 Honolulu, HI 96813 Fax: 808-675-5483 Mobile: 808.366-9300 Email: tfeeley@honhl.com
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