FHA Condo Approval Process Update

On Nov 6, 2009 FHA Announced More Changes and Updates to the Condo Approval Process.

Here are 5 Things You Need to Know about the New Condo Approval Process:

1. The new temporary changes and updates are effective on December 7, 2009 through December 31, 2010; with the exception of the spot approvals.
2. Spot approvals will be eliminated effective February 1, 2010.
3. FHA loan concentration within a project or development may be increased to 100% as long as the following criteria are met: A) Project construction has been 100% complete for at least 1 full year. B) All units within the project have been sold and no single entity owns more than 10% of the units. C) Development or project HOA holds 10% of the budget in reserves for capital expenditures and deferred maintenance. D) Control of the HOA (Home Owner’s Association) has been transferred to the owners of the units; and E) Owner-occupancy is a minimum of 50%.
4. Although FHA requires a 50% owner-occupant ratio, bank owned units that are either vacant or tenant-occupied are no longer required to be included in the ratio calculation.
5. New construction project’s/development’s pre-sale requirements are temporarily reduced to just 30%.

Over 50% of all loans nationwide today are now processed through FHA.  Know that your lender knows and understands FHA! Skyline Financial Corp, which powers the CA Mortgage Guy, is proud to be directly endorsed by the US Department of Housing and Urban Development (HUD) to originate, underwrite, process, fund and deliver FHA insured home loans.  Year to date 2009 we have funded millions of dollars in FHA loans for hundreds of California home owners!!

Contact the CA Mortgage Guy today for your FHA financing needs or any questions on FHA you may have!

Look forward to my next posting!