FHA Spot Approval Process Expiring For Condominiums

The Federal Housing Administration (FHA) is implementing a new approval process for Condominium Projects to insure mortgages on individual units under Section 203(b) of the National Housing Act. HUD will continue to maintain a list of Approved Condominium Projects. The requirements of this Mortgagee Letter are effective for all case numbers assigned on or after October 1, 2009 except as noted. This will require Condominiums to get the entire project approved for any FHA loans to be allowed, which is very costly and takes time. Bottom line, it takes aways one more funding source for buyers and sellers of condominiums. http://tinyurl.com/yeuusaf