Condo FHA changes date MOVED AGAIN... DEC 7th

Condos in Trouble

FHA has just issued new condo guidelines that will become effective on October 1, 2009. If you currently either have buyers interested in purchasing condos or clients looking to sell their condo you need to know the facts below:

• As of right now, after December 7th now... FHA is voiding all condo project approvals that were done BEFORE October 1, 2008
• This means FHA loans will not be able to be done in an ineligible project until it is Re-approved which will be a difficult and lengthy procedure
• A project approval will cost $1,500 and up and FHA is now going to require an attorney's opinion letter, which can be another $800 or higher.
• Spot FHA condo approvals will no longer be allowed
  • This means that if you have a condo client who wants to buy or sell FHA, you should get them to do it NOW. After November 2^nd, the whole project will have to be approved for just one FHA loan and will be a long and tedious process
    • Project approvals are currently taking 6-8 weeks. If FHA holds to their current November 2^nd rules, and some 55,000 condo projects nationwide have to get re-approved, who knows how long an approval may take.
• Only 30% of the loans in any project will be allowed to be FHA loans
  • For example in a 30 unit project only 9 FHA loans will be allowed. Since FHA is the preferred program currently for most condo buyers, condo sales for the remaining 21 units will be difficult

LET CHERRY CREEK GET YOUR CONDO PROJECT APPROVED. We have one of the best and most experienced project approval experts in the U.S. on our Cherry Creek staff. This gives you a huge advantage over your REALTOR^® competitors in the condo arena.