Salt Lake City FHA Condo Loans

Beginning October 1, there will be some changes to the Approval process for FHA Condo loans in Salt Lake City and nationwide.

Up until now, Condo projects were either already approved and listed on HUD’s website for FHA financing, or they could be “spot approved” for FHA loans, meaning the lender could get evidence that the Condo project met FHA guidelines and approve a loan on one of the units. This DIDN’T approve the project through HUD though, so the next time someone wanted to get an FHA loan on a unit in the same project, they also had to go through the “spot approval” process.

Under the new rules, FHA lenders will have the authority to actually approve a Condominium project for HUD. This means that there will be no more “spot approvals”, but once a loan is done on a unit in a development, it will be added to the approved list and future loans in the project will be easier to do. Over time, this should really streamline the time it takes to do FHA loans on condos here in the Salt Lake City area.

The drawback is that it may take longer and be far more difficult to get an FHA loan done on that first unit in the project, so keep that in mind when writing an offer on a Condo that is not on HUD’s approved list. If you would like more information about these rule changes and what the requirements are for a Condo Project to be eligible for FHA financing, just let me know!

Your Salt Lake City FHA Mortgage Specialist

www.AlwaysCallDave.com