FHA Condo Process
Starting December 7th, 2009, FHA is changing their condo approval process and the list at https://entp.hud.gov/idapp/html/condo1.cfm to the new approval method, HRAP/DELRAP. If you want to know what those to mean and you are in Florida then all you need to know is what HRAP is. It means that the condo has to be submitted directly to HUD for approval. You can do spot approvals up until February 1st, 2010.
If you want to fall asleep right away and/or have your head spin, then you can click on this link http://www.hud.gov/groups/lenders.cfm, under “What’s New,” click on “FAQs ML 09-46.” If you don’t want to do that then you can certainly call or email me with any questions.
“The Mortgagee Letter states that projects will need to be recertified every 2 years. If a project approval has expired or will expire in the near future does the case numbers have to be issued by the time of expiration, the loan approval or actually closed? FHA will move all currently approved condominium projects to the new Project Approval Condominium List in the FHA Connection database.”
If the project is on HUD’s approved list that doesn’t mean it is a done deal because the lender has to certify that they are not aware of any changes that would not comply with FHA.