Posts Tagged ‘new FHA guidelines’
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!!
