Unfortunately, FHA approval is a time consuming and costly process that many HOAs simply didn’t want to deal with.Many condo complexes these days have expired FHA approvals.So, needless to say, re-introducing FHA’s spot approval program could help condo buyers tremendously.As it stands, condo buyers have to be approved for conventional financing, usually requiring five to 10 percent down and great credit scores. Section 203 (b) of the National Housing Act provides authority to insure any mortgage covering a one-family unit in a project coupled with an undivided interest in the common areas and facilities which serve the project. I assumed that once you opened escrow, you were ok, but never really thought it through.interesting blog post and an asnwer that was not surprising but yet surprisingly fair!!! Prior to the changes at that time, a Condominium Complex only had to become certified once – and the certification never expired. Spot approvals would give them a third, better option.No one at FHA is saying a word as to when spot approvals will be rolled out again, or whether it’s a sure thing at all.One thing is certain, however: spot approvals will require a more stringent approval process than they did pre-2010.
Recently, HUD has pushed backed to us saying that the project must not be expired at the time of closing.
NICE to know and I am keeping your contact info for future need if the need for clarity should arise. Services for Real Estate Pros with ReadySetLoan Condo Team LLC make an informed decision when buying or selling a house. Value Added Service, 602-620-2699 - Scottsdale, AZ ;-)Steven - I don't want to sit in those webinars any more than the next person but I am a glutton for information!Richard - I am sure that many feel the same as you do.
For example, it will allow certain condo units to be eligible for FHA mortgage insurance even if the condo project itself is not FHA approved. New Blog Post!!!! ActiveRain, Inc. takes no responsibility for the content in these profiles, I 'think' I understand this information. The agency is expected to come out with the new permanent guidelines before the expiration date.Condominium project approvals will expire two years from the date of placement on the FHA-approved condo list. RE/MAX Suburban - Schaumburg, IL We tried to get it FHA approved, since most of our buyers were looking for this kind of loan, but after two months of waiting we just gave up and sold it for less to conventional buyers( ratio of owner occupied and reserve was not good).For several years, HUD has always used the date the FHA Case # was issued vs the Project Approval Expiration Date. Barcode Properties - Encino, CA Back then, an approval required a quick questionnaire that could be completed within minutes by someone at the HOA.To limit fraud, any spot approval process approved by FHA would be water-tight, meaning a more involved process.That said, any spot approval allowance would be better than nothing. If they need FHA, they are forced to look at single family homes, which are generally out of a condo buyer’s price range.Many buyers keep looking until they find an FHA-approved condo, or simply give up. that are written by the members of this community. New Blog Post!!!
As long as the FHA Case # was issued PRIOR TO the Approval Expiration DATE, it was OK for an FHA mortgage. When the Federal Housing Administration grants approval for a condo complex, this carries an expiration date, at which time the project must either recertify or stop accepting FHA funding for condo purchases. It's never happened to me before, but there are always new condo sales in the future to worry about.Eric this is excellent and very useful information, thank you for passing it on.Excellent information as usual, we can always count on you for up to date information.Eric -- thank you for helping keep the rest of us current on situations like this, as each one of us has various priorities, and one of those might be getting more business, instead of being on webinars 10 hours a day. Tim Lucas (NMLS #118763 ) is editor of MyMortgageInsider.com. FHA Approval. The recertification process can start six months prior to the expiration date until six months after the expiration date. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them