New FHA condo requirements
HUD recently announced it is implementing new FHA condo requirements and new certification and recertification programs.
Condominium and townhome developments must have FHA approval to qualify for a FHA loan (purchase or refinance) due to rules implemented in February 2010. Spot approvals for individual units are no longer permitted. Condominiums approved prior to Oct. 1, 2008, must be recertified by Dec. 7, 2010. The recertification process may be performed by HUD via an HRAP Submission or by a lender with Direct Endorsement authority (DELRAP submission).
In addition to this certification requirement, beginning Jan. 1, 2011, in order for an FHA loan to fund, the condominium development also must meet the eligibility requirements at the time of underwriting to qualify for an FHA loan.
