FHA DELAYS IMPLEMENTATION OF NEW CONDOMINIUM RULES
Mortgagee Letter 2009-19 provided guidance on the new approval process for condominium projects for mortgages insured by the Federal Housing Administration (FHA). The rule effectively places condominium projects in FHA's 203(b) Single Family Program. This new approval process was effective for all case numbers assigned on or after October 1, 2009. However, the new effective date is for case numbers assigned on or after November 2, 2009. The site condo and manufactured housing condo project changes that have already taken effect are not affected by this delay.
On July 31, 2009, NAR President Charles McMillan sent a letter to FHA Commissioner David Stevens recommending enhancements to the new condominium rule. Mr. McMillan also discussed NAR's recommendations at a meeting with the Commissioner on September 8, 2009. NAR is calling for: 1) a reduction in the owner-occupancy requirement, 2) eliminating or increasing the FHA concentration limit, 3) reducing the pre-sale requirement, and 4) clarification of the reserve study requirement.
NAR Letter to FHA on New Condominium Rule Enhancements
Mortgagee Letter 2009-19: Condominium Approval Process - Single Family Housing
Jerome Nagy 202-383-1233, Megan Booth 202-383-1222
National Association of REALTORS(R) NAR@newsletters.realtor.org
We represent home buyer clients as their exclusive agents in the Maryland suburbs of Washington DC and nearby counties.
We represent home buyers and sellers as their exclusive agents in the Maryland suburbs of Washington DC.
Roy Kelley
Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group
Client Assistance: 301-670-8996
Recipient of the RE/MAX International Lifetime Achievement Award - 2008
I was helping sell a condo conversion project last year and getting those last few sales to get over that FHA owner occupancy rate was like pulling teeth.
