Mortgage Advice

It looks like FHA has listened to all of us...for a change and has pushed the condo rule changes out until 12-7-09. In the letter we received from FHA, which follows, if you read between the lines, it also sounds like they are going to revise some of the earlier changes. The most severe change was only allowing 30% FHA loans in any one condo development. I am sure we will all be waiting on pins and needles the next 2 weeks for these changes, particularly those of you who have condo listings. Following is the letter we received from FHA. I will keep you posted of any updates.


"FHA notice on delay in FHA condominium changes:

Implementation of FHA's new policy guidance for condominium project approval and condo unit financing will be delayed until December 7^th  2009.  The new guidance, to be issued within the next two weeks, will:  1) offer additional leniencies to address the difficult market conditions and 2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.   

Until the new guidance takes effect on December 7^th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41.  Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay. 

To read FHA Mortgagee Letters 1996-41 and 2009-19 please visit: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/