If You've Been Considering A Condo - Here Are Some Changes You Should Be Aware Of...

Hello,

Happy Veterans Day! ...and thanks to all of you Veterans.

FHA is making some changes to their Condo guidelines. If you are currently shopping for a condo, or if you are considering a condo - you should be aware of these changes...

1. These temporary changes are effective on December 7th, 2009 through December 31st 2010; except for Spot Loan Approvals.

2. Spot Loan Approvals will be eliminated as of February 1st, 2010.

3. FHA loan concentration may be increased to 100% if the following criteria are met:

a. Project construction has been 100% complete for at least 1 year.

b. All units have been sold and no single entity owns more than 10% of the units.

c. Project holds 10% of the budget in reserves for capital expenditures and deferred maintenance.

d. Control of Home Owner's Association has been transferred to the owners, and e. Owner-occupancy is at least 50%.

4. FHA requires a 50% owner-occupant ratio but bank-owned units that are either vacant or tenant-occupied are not required to be included the calculation.

5. New construction pre-sale requirement is temporarily reduced to 30%.

I hope you have a good day today. Thanks for reading!


Brett