HUD Revamps Requirements for FHA Condominium Project Approval

November 4, 2010

Finance

Financing on Condos is More Challenging

Financing on Condos is More Challenging

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Life just got a whole lot tougher in the wonderful world of condominiums. HUD recently announced that they are requiring all condominium projects undergo re-approval. This literally means that every condominium development that successfully underwent the previous process will no longer be approved and they must reapply for approval to be eligible for FHA loans. Needless to say if not managed closely by condominium boards, Realtors, lenders and sellers, this could result in a humungous mess.

There is Good News

The good news is that some developments will undergo an abbreviated process, which allow for only moderate inconvenience to those boards that are organized and that plan ahead. The date of original approval will define how stringent a process that the development will need to undergo.

The specifics of the requirements are as follows:

  • If project initially approved prior to January 1, 2000, full project approval is required
  • If project initially approved on or after January 1, 2000, then the project is eligible for the recertification process
  • Projects may be recertified beginning six (6) months prior to the approval expiration date or within six (6) months after the approval expiration date
  • Projects not recertified within six (6) months after the approval expiration date will require full project approval
  • To determine date project was initially approved – can be checked in FHA Connection or on the public web site located at: https://entp.hud.gov/idapp/html/condlook.cfm

The important take away for this is that this can affect your listings and/or current deals if everyone is not fully aware of the changes and prepared to react.

We would like to thank Nancyarora2020 for kindly sharing today’s photo via the Creative Common’s License.
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About Doug Katz

As the Senior Mortgage Banker and Sales Manager for Chicago Bancorp, Doug not only originates loans for his personal business, but also oversees affiliations with banks and other financial institutions that depend on Chicago Bancorp to meet their client’s lending needs. In this role, Doug directs the day-to-day mortgage sales operations of over 25 branches in a multitude of Chicagoland’s diverse communities. He brings to these relationships a wealth of industry experience and a dedication to an exceptional client experience that has established Chicago Bancorp as Chicago’s pre-eminent mortgage solution providers. Prior to joining Chicago Bancorp, Doug attended and graduated from West Point. Upon graduation, he was commissioned as an officer in the United States Army Artillery, where served 5 years in numerous roles and in various deployments include service in Kuwait. In addition to his Bachelor’s Degree from West Point, Doug holds an M.B.A. from Loyola University Chicago, where he was also inducted into the Beta Gamma Sigma Honor Society. He also served as President for the West Point Society of Chicago from 2003 to 2005 and still serves on the Board of Directors. When not working, he spends his time with his wife and three children in their hometown of Oak Park, as well as pursuing his passions for fitness, cooking and the banjo. Doug can be reached by phone at 312.738.6079, by email at doug@chicagobancorp.com, on his own blogs, BankerDoug.com and Vet Money Matters. He's also on LinkedIn.

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