FHA will not allow for spot approvals on condos after the end of this month. If you are trying to close one of these, make sure that you have the spot approval and the FHA case number ordered prior to 9-30. If these things are done you will be able to close the loan after 9-30 but if not you will be out of luck. Your lender should know how to do the above mentioned things but if you need help or more clarification please email me.
Going forward the entire building must be FHA approved to be able to get a FHA loan on a condo. This is a grueling and tedious process but if you invest some time you can get the entire building approved and then things will flow smoothly. This is a huge blow to condos because Fannie and Freddie have tightened up their guidelines so much it will be very hard to get a loan for a condo going forward.
Sincerely,
Luke Carrier
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