Category: Loft Buyers
Posted by michaelhulett in Loft Buyers Monday, 15 March 2010 09:22 No Comments
Effective February 1, 2010, the Federal Housing Administration (FHA) changed the condominium approval process, which may affect home buyers who are interested in using an FHA loan to purchase a condominium. These changes will speed up approvals in many cases. In addition, although some rules for property eligibility have been tightened up, others have been loosened to increase the number of properties eligible for FHA financing. Highlights of the changes for 2010 include:
Faster approvals. The new process for internal lender approval (DELRAP) could reduce the approval time significantly for most new and existing condominiums, although it may take longer in some cases.
Elimination of spot approvals. Condominiums will receive a decision on the whole project or legal phase rather than individual units.
Approvals no longer needed for detached condominiums. Buyers will be able to apply for financing under single family home requirements.
Changes in property restrictions. Changes in some requirements will make more properties eligible for FHA financing. Other changes increase restrictions on guidelines such as investor ownership and status of condominium fees.
Please contact our lending partner, Andrew Luett at Wintrust for more information: 773.303.0273 // ALuett@LuettMortgageGroup.com
Thanks!!
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Chicago lofts, Short Sales, Foreclosures, FHA, and the $8000 Tax Credit
Posted by michaelhulett in Loft Buyers Sunday, 24 January 2010 09:46 No Comments
If you’re looking to purchase your new loft this spring there are TWO things you need to be aware of:
1.) FHA spot approval ends this month. If you don’t have a case# by January 29th it’s no dice. See your lender for more info or contact our longtime lending partner Andrew Luett w/Wintrust Mortgage at ALuett@LuettMortgageGroup.com. It’s not the end of the world as you can as you can still get the entire building approved but it often takes longer. Also, make sure to coordinate that timeline w/ your lender if you qualify for the tax credit, see below.
2.) If you’re depending on the $8,000 credit (to see if you qualify check out our recent post: http://www.lofthunt.com/2010/01/extended-home-buyers-credit/) then you really need to be very careful if choosing a distressed property. If the property is already controlled by the bank such as a foreclosure or if it’s a bank approved short sale, then you can probably get by with a diligent effort and a good team (Realtor, Lender, attorney). If it’s a typical short sale, BE CAREFUL. These transactions can drag on for months on end with little to no resolution. So what’s the problem? Well to qualify for the tax credit you need to have the property under contract by end of April and close by end of June. Since the life cycle of a short sale can often push the 1 year timeline, it’s likely that many buyers will blow right past those dates this spring. So be aware, move forward carefully and as always- Live lofty.
