Comments on: FHA Condo Approval Process – MAJOR Guidline Changes

By: Jim Reppond

Jim Reppond — Tue, 02 Feb 2010 10:09:37 +0000

Well, we are now in the era of no spot approvals. Let’s see how this all shakes out. The next shoe to drop is the increased mortgage insurance premium starting in April. I bet there will be some more government-inspired mandates coming as well.

By: Steve Stenger

Steve Stenger — Mon, 01 Feb 2010 22:54:52 +0000

A condo must have a 10% reserve contribution in their budget. FHA doesn’t verify if the association has any money currently in their reserve account.

Kind regards,

Steve Stenger
President
Condo Approval Professionals LLC
(847)293-2962
E-mail: steve@condo-approval.com

By: Steve Stenger

Steve Stenger — Mon, 01 Feb 2010 22:53:17 +0000

Actually, the last day to get a case # to do an FHA spot was last Friday. From now on a condo association must be approved by FHA in order to offer FHA financing in that community. I can help you with this process. My company, Condo Approval Professionals LLC, specializes in this process.

Sincerely,

Steve Stenger
President
Condo Approval Professionals LLC
(847)293-2962
E-mail: steve@condo-approval.com

By: Rhonda Porter

Rhonda Porter — Mon, 01 Feb 2010 22:28:02 +0000

Jim, it's my understanding that today is the last day to have an FHA case # issued prior to this Mortgagee Letter going into effect (it was extended from when this post was originlly written).

By: alberto babot

alberto babot — Mon, 21 Dec 2009 16:45:47 +0000

if a condo does not operate with an account of reserves to keep the maintenance payment low then is this condo not approved?

By: Steve Stenger

Steve Stenger — Thu, 12 Nov 2009 15:27:59 +0000

Yes, recertification is a much smaller and easier process. Reapplying would require submission of the Declaration of Condominium Ownership and all of the other documents required for full project approval. I can help you with either process.

By: Kerry

Kerry — Thu, 12 Nov 2009 12:55:06 +0000

Steve, thanks for your reply. The language in HUD’s letter is hardly explicit and leaves a lot of room for interpretation. However, your interpretation of the letter’s inent makes sense. Is there really a difference between recertification and reapplying?

By: Steve Stenger

Steve Stenger — Thu, 12 Nov 2009 01:09:16 +0000

Condos that were approved prior to 10/08 will need recertification prior to 12/2010 or they will fall off of the approved list. This means that they will then need to reapply for approval if they haven’t been recertified. In the case of these condos, FHA will require recertification prior to closing their next FHA loan. You will begin to see recertification required on the remarks section of the approval if you look it up on the HUD website. I can help those that need to get their condo recertified or even approved. My company, Condo Approval Professionals, specializes in this area.

Steve Stenger
President
E-mail: steve@condo-approval.com

By: Kerry

Kerry — Wed, 11 Nov 2009 16:20:39 +0000

Jim,

The new letter that was put out by HUD on 11/6/09 states that “projects that received approval prior to October 1, 2008, will require recertification on or before December 7, 2010.” Do these projects that were approved prior to 10/1/08 have a grace period of exactly one year from when the new guidelines become effective? In other words, are we to assume that these projects will be acceptable by FHA until 12/7/10? It doesn’t make sense considering that the intitial requirements for approval of these projects were different from the new requirements.

By: To the Students from the Oct 27, 2009 REO Class : ceforward.com

To the Students from the Oct 27, 2009 REO Class : ceforward.com — Sat, 31 Oct 2009 05:54:12 +0000

[...] was a request for information on the new FHA Condo changes. Here’s a nice blog post summary from Jim Reppond on RCG. Deadline has been pushed forward to Dec 1, [...]