Market Update-FHA guidelines effecting CONDOS

Home Finder Network — Sat, 03 Oct 2009 00:57:11 +0000

If you state anywhere on a Condominium listing in MLS that the condo is “FHA approved” or “has FHA approved financing,” it is HIGHLY recommended that those remarks be removed if the condos were FHA-approved PRIOR to Oct. 1, 2008 (approx. 1 year ago). FHA policies have recently changed:

1) As of Oct. 1, 2009, all lender “spot approvals” are terminated.

2) Effective Nov. 2, 2009, all condos with “permanent” FHA approval status granted PRIOR to Oct. 1, 2008 will be rescinded. This means that the condo complexes MUST be re-approved by FHA.

3) Mortgagee Letter 2009-19 outlines the new approval process for Condo Projects, allowing lenders to determine project eligibility, review project documents, and certify to compliance of Section 203(b) of the National Housing Act and 24 CFR 203 of HUD rules. This new approval process will be effective for all case numbers assigned on or after Nov. 2, 2009.

We are still awaiting how FHA will be re-evaluating FHA approval for Condo projects. As soon as that information is released we will report it.

-The Home Finder Network

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Market Update-FHA guidelines effecting CONDOS