Monday, September 14, 2009

FHA condo changes

If you didn’t get the word already, FHA Spot condo approvals have been eliminated as of 10/1/09. We can submit for project approval via our sponsors, but I am sure it will be a very tough process, as the Lenders are now responsible for issuing the FHA project approval not HUD.

Per Mortgagee Ltr 2009-19, this is part of the Housing and Economic Recovery Act, HERA and HUD will continue to maintain a list of approved condo projects.

FHA to FHA streamlines do not require project approval.

FHA REO’s don’t require project approval.

Project approvals are good for 2 years, after 2 years they will require a re-certification to determine they still meet FHA criteria. This also applies to all projects currently on the list of approved condos.

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