Buying a condominium can be a challenging process. Add FHA into the mix and things get even more so. It becpmes so very important that you deal with a lender that has experience navigating buyers through these special transactions.
Deborah Garvin, Gateway Diversified Funding, Oceanside, CA does an excellent job of explaining and instructing condominium-buying participants, both client and professional, through the special steps that should be considered both prior ... and during ... a FHA condo/purchase process.
For assistance in the Oceanside, CA region when buying a condominium ... please make sure to contact Deborah Garvin. She has the expertise needed to get you to the closing table successfully.
If in the Chicagoland/Illinois region, please contact me for your condo purchase and for answers to all your home buying and mortgage questions.
These FHA condo transactions are a perfect example of where professional appraising experience strategically comes in play for clients. Feel free to contact me at any time ...
Gene
Keeping abreast of the FHA Condo Approval Process is crucial in ensuring successful closing of your condo listing or purchase. There are very lenders doing spot approvals these days, so clarifying the status of a specific condo project BEFORE a purchase contract is entered into will save all parties concerned a lot of anxiety and frustration.
It is also strongly recommended that the HOA certification is ordered at the BEGINNING of the loan process. There are many reasons the purchase of a condo can run into issues in the underwriting process. The most prevalent is the ratio of owner occupied units versus rentals; however, adequate reserves are becoming a serious obstacle when the vacancy percentage is high due to foreclosure or bank owned property.TO CLARIFY THE CURRENT FHA CONDO APPROVAL/RECERTIFICATION PROCESS PLEASE SEE BELOW:
FHA Condominium Project Approvals Expiration Dates Extended:
FHA announces extension of condominium project approvals with an expiration date of December 7, 2010. Provided below are the extension dates based on five-year time frames with the exception of those condominium projects with original approval dates from 1972 -1985.
Initial Project Approval Dates Current Expiration Date New Expiration Date
1972 - 1980 December 7, 2010 December 31, 2010
1981 - 1985 December 7, 2010 December 31, 2010
1986 - 1990 December 7, 2010 May 31, 2011
1991 - 1995 December 7, 2010 July 31, 2011
1996 - 2000 December 7, 2010 August 31, 2011
2001 - 2005 December 7, 2010 September 30, 2011
2006 - 2008 (Sept) December 7, 2010 March 31, 2011
The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions. Lenders and/or other interested parties are encouraged to begin the re-approval or recertification process as early as possible as it is not anticipated that any further extensions of project approvals will be issued.
The Condominium look-up page and the FHA Connection databases were updated on December 7, 2010 and now reflect the extended expiration dates. The links to the sites are:
Condominium look-up page: https://entp.hud.gov/idapp/html/condlook.cfm
IN ADDITION, IF THE CONDO IS STILL ON THE APPROVED LIST THE UNDEWRITER IS RESPONSIBLE TO RECERTIFY THE CONDO AND WE STILL NEED THE FOLLOWING DOCUMENTS:
1- Updated Completed Condo Questionnaire to make sure it still qualifies
2- Current Budget
3- Master Liability Insurance with a minimum of $1,000,000 coverage
4- HO6 Policy
5- UW to Complete Condo Recertification form
Deborah Garvin
If you are looking for answers and creativity to accomplish your home buying goals and financial stability, contact me for a thorough analysis of your current and future home buying and refinance opportunities. FHA, VA, renovation expert, HUD Certified First Time Homebuyer Certified Mortgage Banker.
(619) 787-8212
Gene Mundt, Sr. Vice President
Personal NMLS #216987
The Federal Savings Bank
1823 Centre Point Circle, Naperville, IL 60563
Now on Skype! 630-219-1316
