FHA Condo Update

FHA cannot seem to make up their mind when it comes to their new condo rules.  They were supposed to go into effect on October 1st, 2009, then changed to November 2nd,  2009, and now are pushing it back to December 7th, 2009.  Here is what they had to say:

 “Implementation of FHA’s new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th  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 7th, 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/