Looks like a new mortgagee letter from FHA, mortgagee letter 2009-46b is out with the new condo approval process for FHA loans. Saying it simpler, if you are buying a condo these are the guidelines lenders will be looking at for all FHA loans. You still have guidelines from Fannie Mae and Freddie Mac, then beyond that it is up to each individual lender and their interpretation of the guidelines and how much risk they want to take on. I originally talked about these changes in my earlier post HUD Delays Condo Changes notifying everyone of the delay until December 7th, 2009 for these changes to take place. The major change is the elimination of FHA’s Spot Loan Approval process for condo projects. So this means that all projects will be required to be approved through FHA with two approval options:
*HUD Review and Approval Process (HRAP)
* Direct Endorsement Lender Review and Approval Process (DELRAP) — The preferred method for approval, as it is typically faster.
DELRAP is available only through lenders who have unconditional Direct Endorsement authority as well as staff who are experienced in reviewing and approving condo projects. So this means for any one looking for financing on condos it is very important now what lender you choose and knows what they are doing!
Here is a link to the actual Mortgagee Letter 2009-46b for your reading pleasure. Any questions please feel free to ask and as always……Hope this helps 
Looks like HUD will be delaying the changes from Mortgagee letter 2009-19 to December 7th, 2009. Most of the changes are still coming out November 2nd from that letter, but new policy for condo project approval and condo unit financing is being delayed until the December date. So if you are in the market for a condo and need FHA financing to do it…..now is the time before the changes take place. Remember, the major changes that effect Chicago, Illinois are: HUD is putting the condo approval process in the hands of the direct endorsement lenders, so it will be up to them. HUD is still going to require 50% occupancy rate and they are capping their concentration to no more then 30% financed through FHA.
I can help you nationwide and Podemos ayudar en espanol! With my network of trusted individuals within the housing industry, allow me to be a person who is a one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage start by sending me an email or give me a call now.
HUD and Condos, don’t forget about the change happening November 2nd! This should help a condo market like Chicago Illinois. Yes there are some downsides like consentration of FHA loans within a project, but conventional lenders have always had this in place and never hurt the market before. HUD is putting the condo approval process in the hands of the direct endorsement lenders, so it will be up to them. HUD is still going to require 50% occupancy rate and they are capping their concentration to no more then 30% financed through FHA. Most major lenders never went over 33% at the most in any project, so again, this has always been there and HUD is just coming into the times. There are several more changes that are taking place and encourage people to read the Mortgagee letter that I have linked to and is mortgagee letter 2009-19.
http://tinyurl.com/mortgagejaw10
I can help you nationwide and Podemos ayudar en espanol! With my network of trusted individuals within the housing industry, allow me to be a person who is a one stop person for any of your home buying needs. If you are needing a mortgage on your purchase, or the refinancing of your mortgage start by sending me an email or give me a call now.
