North San Diego County - 72 out of 100 FHA Condo Recertifications Coming Due 12/7/2010

Mortgage and Lending with Reverse Mortgage Division of HSL

HUD's Mortgagee Letter 2009-19 covering the Condominium Approval Process clearly states in Section XIII. that all projects must be recertified after 2 years.  The cut off date for those now on the approved list can be found at  The date when the vast majority of condominiums will need to be recertified, assuming there's a buyer, is December 7th of this year, in only 16 weeks.

There are currently 100 condominium projects approved in North San Diego County.  This covers all of Oceanside, Carlsbad, Encinitas, Del Mar, Cardiff by the Sea, Solano Beach and Carmel Valley.  72 of these projects are set to expire in December.  I've noticed that a great number of today's listings of condos indicate that they are FHA approved.  This will simply not be true if the FHA case number is ordered after that date.

From now on, all approved condominiums throughout the country will expire two years after the re-certification or initial approval date.  HUD/FHA wants to make certain that the projects are "still in compliance with HUD's owner-occupancy requirement and that no conditions currently exist which would present an unacceptable risk to FHA".  A representative from HUD recently told me that approximately 35,000 projects in the United States will no longer be on the approved list come December 7th.

The good news is that certain major lenders are now able to approve the project and are doing so.  The approval time for the bank that I'm affiliated with can get them approved in less than 10 days.  This time framework assumes that all the information needed is put into the approval package.  The reason this is of such high importance to me is that I concentrate on the FHA Reverse Mortgage for Home Purchase Program.  In many cases, the most Senior Friendly Homes happen to be condos.  Effective today, you can now calculate the approximate down payment a senior needs by going to this site:


Comments (1)

Tiffany Torgan
Harcourts Prestige Properties of La Jolla - La Jolla, CA
Featured on HGTV's New Show! How Close Can I Beach

Hi Ken, this is really interesting regarding FHA and condos. Thanks for the post!

Aug 16, 2010 12:57 PM