Implementation of FHA’s new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th 2009. The new guidance, to be issued within the next two weeks, will: 1) offer additional leniencies to address the difficult market conditions and 2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.
Until the new guidance takes effect on December 7th, 2009 lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo and manufactured housing condo project changes that have already been implemented are not affected by this delay.
- All FHA approved condominium projects have at least a 50% level of owner occupancy or sell out, '
- NO more than a 15% condo fee delinquency rate, this has been changed it used to be 10%
- A capital reserve study THIS IS DUE ON DEC 7TH 2010 OR CONDO DELISTED