It is important that condo buyers be aware that new FHA lending regulations will be implemented starting November 2, 2009. It is still possible to get FHA financing on some condos but it will take more time. There are plenty of other ways to finance condos as well, so don’t let this deter you from buying a condominium.
If there are Condominium listings in MLS that state that a 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2) Effective Nov. 2, 2009, all condos with “permanent” FHA approval status granted PRIOR to Oct. 1, 2008 will be rescinded.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.
At The Alison Moss Group, Cincinnati is more than a city to us–it’s our hometown. Since launching in 2008, our clients have depended upon us to lead them through the home buying and selling journey. We are the go-to resource for all of your needs before, during and after the sale of your home.