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New FHA Rules for Condo and Carbon Monoxide Detectors.

By
Real Estate Agent with Keller Williams

 FHA Funding for Condos.

The FHA now has 2 lists for condo approvals;

1-Those that have been approved prior to December 7th 2009 with the "old rules" and

2-Those that are considered approved because they were either approved after December 7th 2009 and/or were approved with the "new rules" already or within an acceptable timeframe of the new conversion. 

What this means is that even if a complex was previously FHA approved, there's a good chance it needs to be reapproved and your FHA buyers may not be able to purchase a property in the complex until it is. With spot approvals no longer an option, the HOA has to get things approved-which can take 3-4 weeks once all requirements are resubmitted to the FHA. Bottom line is to check and make sure the complex has been approved with the new FHA rules prior to showing or making an offer on a condo property. You can check by going to the following website and typing in the complex name at:

https://entp.hud.gov/idapp/html/condlook.cfm

The condo association must come up on the HRAP/DELRAP list-the first one on the drop down list.

For Colorado (other states???) FHA and carbon monixide detectors. Many investors (for FHA mostly) are requiring that the appraiser's note whether the carbon monoxide detectors are installed or not. If they are not installed as of the appraiser's visit to the property, there is a good chance they will need to re-inspect the property to insure they have been installed prior to final review or closing and you may incur another $75-$100 fee to your client for the re-inspect. Again, try and make sure the CM detectors are installed prior to appraisal.

Barbara Altieri
Better Homes and Gardens RE Shore and Country Properties - Shelton, CT
REALTOR-Fairfield County CT Homes/Condos For Sale

Hi Jim -- Good info.  This is very timely info for me as I am going through a condo offer right now.  The buyer wants to go FHA, but the complex is not FHA approved.  I was told by the condo managment that they would do a spot approval. Waiting to see where that goes -- or not.  Will have to check into the CO detector requirement.  Thanks for the heads up.

Jan 16, 2010 05:42 AM