If you have a buyer who is thinking of buying a condo, loft or townhome in the near future, please take note of the new FHA Condo Guideline Changes that are effective immediately.
(1) Spot Approvals (only available on "established" condos) will no longer be allowed after February 1, 2010. This means condos that are not already FHA approved will have to through the lengthy process of providing all condo docs for approval (bylaws, condo rules, budgets, legal documents, etc)
(2) FHA loan concentration in a condominium project has been increased from 30% up to 50% until 12/31/2010 ("Established" condos can go up to 100% FHA concentration if certain conditions are met.)
(3) At least 50% of the units sold and occupied or presold must meet the 50% Owner Occupancy requirement.(Vacant or tenant-occupied REO's may be excluded from this calculation.) Temporary until 12/31/2010
(4) Presale requirements on new construction will be reduced temporarily to 30%. Temporary until 12/31/2010. This is BIG !!!! It will help make it easier for new projects to get approved by reducing the mandatory presale requirement.
(5) FHA Condo Approval may now be done by an FHA Approved Lender with "unconditional Direct Endorsement authority" (DELRAP) or by submission to FHA.under (HRAP). Yes, Bank of America can do DELRAP ! This will help you get the approval process done and we are authorized to assist!
(6) One year HOA seasoning no longer will be required on Condo Conversions.
(7) For projects not built under FHA inspections during construction, FHA will no longer require that FHA loans be covered under a 10 year warranty plan as long as the building permit and certificate of occupancy are issued by a local jurisdiction that performs a minimum of three primary inspections during construction.
Kerry Lucasse :: Atlanta Real Estate :: Keller Williams Realty :: 404.432.1844