Monday, September 14, 2009
New FHA Condo Approval Guidelines
FHA has recently released a Mortgagee Letter that will change how condominium projects are approved for FHA financing. HUD will eliminate spot approvals and the current FHA Approved Condo List on all case numbers issued on or after October 1. FHA will now allow lenders to determine project eligibility, review documentation and certify that it is compliant to HUD's guidelines and regulations. There will be two condominium project approval options. The documentation requirements will be the same for each option. The first option is a HUD Review and Approval Process option referred to as HRAP (probably will be longer and more costly). The second option will be Direct Endorsement Lender Review Process referred to as DELRAP. This option is restricted to lenders who have unconditional Direct Endorsement authority and staff with knowledge and expertise in reviewing and approving condominium projects. It's too early to tell how these changes will affect FHA condominium financing. Lenders are currently scrambling to figure out how they will deal with the additional liability of certifying these projects with all the current condominium challenges and exposure. For more information on financing a home please contact Eric Intihar of US Mortgage of Florida at Eric@SpecialtyMortgage.com
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It is very interesting for me to read this post. Thanks for it. I like such themes and anything that is connected to this matter. I would like to read more on that blog soon.
ReplyDeleteIts really very good to know regarding the FHA Condo approvals.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.
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