New FHA Condominium Approval Guidelines ........ New Effective Date.

Esko that could be one reason, the other might simply be that 30% is to low.  The big question is going to be how they are going to monitor this on presently approved condo', my guess is that they will not.

Debbie I don't know if I am back writing blogs, because I am still pretty busy with Borrowers, but I always try to find time to comment on your blogs :) :)

Bill with Conventional Loans being hard to do on Condo's these days especially for first time home buyers who tend to have very little for a downpayment, FHA will have to loosen up even more than the 50%.

Kathryn, I can't see how they are in anyway ready for this change.  They are having a hard time keeping up wih the approvals that they have now, so how in the world are they going to handle the flood of Condo Approval request that they will get once they take away the Spot Approval?  I don't know of any DE Lender around here that is going to take on the responsibility of doing the Condo approvals themselves.  Every DE Lender that I know will still be sending them to FHA for them to do the approvals.  Maybe as time goes on DE Lenders will start to take on that responsibility, but not at the start.

Valerie I was happy to hear this news this morning myself :) :)

Joan, the "Right of First Refusal" put it the simplest way that I can explain it, give the Condo Association the right to by the Condo first before the Condo owner can sell it to someone else.  FHA always viewed this as a restriction on the right of the Condo owner to sell the Condo, and they have not allowed those types of restrictions in the past.  The 50% refers to the number of Condos within a Condo Complex that FHA will allow FHA Loans to be done on.  The remainder would have to be Conventional Loans or some other type of financing.  What they are trying to do by having that limitation is to limit the amount of risk that they are willing to take withing any Condo Complex.

Diane, who knows some day you maybe be doing other things in Real Estate, and have a need for some of this information.

Sally compared to the original 30% that they were proposing, 50% is like Christmas but I don't know how they are going to be able to track it especially on already approved Condo's.

Phil There are a number of Condo's in Middletown and Cromwell that are not on the list for various reasons.  Some have just not applied for full Condo Approval, and others the "Right of First Refusal" has been the issue.  I have done a number of Spot Approvals, on the Condo's that don't have a "Right of First Refusal" issue, and with the Spot Approval going away, that is going to be a big issue for me.  There are Towns that will benefit from the New Approval Process, like Branford.  Most of the Condo's in Branford have the "Right of First Refusal" and I have not been able to do Loans on them.  Hopefully they will take advantage of this change and open it up the FHA.

Ann you are welcome.

Tom with the new proposed FHA Approval process, the "Right of Frist Refusal" will no long be a problem, but doing away with the "Spot Approval" is a big mistake in my opinion.

Jen, you are very welcome.

Bill I know I am a real slacker, falling down on the job ............ LOL

Jennifer, Bill keeps me on my toes.  I have to try to create more time to blog, but it has been hard.