We usually think of a condominium as having other units either above or below and a townhouse as having other units on one or both sides. Appearances can be deceiving. If the legal description says condo, that is what will be used for mortgage purposes. The reason this is important is that the standards are more stringent when the property to be financed is a condo.
To check and see if a project has been approved by HUD go to https://entp.hud.gov/idapp/html/condlook.cfm. The importance of a condo project being eligible for FHA financing can not be overemphasized. FHA is the most common type of mortgage used for purchasing or refinancing a condo. If the project is not FHA approved, the resale and refinancing of the units is severely limited. While their might be other options, they will be a lot more expensive.
HUD has granted an extension on the project expiration dates outlined in their memo sent out on December 8th, 2010. They also mentioned that no further extensions will be granted.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
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