Mortgage Talking Points

We just got done telling you for the last 5 months that the only way we could do a VA loan on a condo was if the project was on the VA approved list.  This change is a big deal for the next 6 months and will open up the number of properties available to veteran buyers.

It’s good news, although it will only help us with VA condo loans on most FHA approved projects until December 7 of this year.  That’s because the majority of FHA approved projects (those approved prior to October 1, 2008) have to be recertified under the new guidelines (the ones that VA doesn’t like) by December 7.

So for now, it is possible to do a VA loan on a condo under one of the following circumstances:

1.      The project is on the VA approved list. http://condopudbuilder.vba.va.gov/2.2/frames.html]

2.      The project is on the FHA approved list and was approved before December 7, 2009.  : https://entp.hud.gov/idapp/html/condlook.cfm]

At least it may save a few deals between now and then.

Fannie, Freddie, FHA and VA have made significant changes to the condo approval process–both for existing and new construction. 

www.MortgageCurrentcy.com (see Charts/Checklist Toolbar) has created a handy comparison chart to share with your real estate agents!  It will help determine what type of financing is eligible for which type of project. 

Are you lending in a UDSA area?  USDA says that they will accept ANY condo project that is approved by ANY agency–but the location of the condo has to qualify too.

Maybe a more appropriate headline would be “Make Hay While the Sun Shines -

FHA just announced another delay to the implementation of the new Condo Approval Process to December 7, 2009.

They are claiming that within two weeks they will issue new guidance that will be a kinder, gentler version of the original condo approval process and offer more clarification.

But the really surprising news is that they’ve reversed their position (temporarily) on spot loans.  Mortgagee Letter 2009-19 eliminated the spot loan approval process as of June 12, 2009.  Now they are telling us that we can do them again until December 7!!  Could this be a hint of things to come???

Official Notice Released Today:

FHA notice on delay in FHA condominium changes: 

Implementation of FHA’s new policy guidance for condominium project approval and condo unit financing will be delayed until December 7^th  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 7^th, 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.

Originally set to take effect on October 1, I think FHA finally realized that they did not allow enough time for companies to get their arms around the condo re-approvals as outlined in their recent mortgagee letter.  Tell your RE Agents that if they have condo listings, which are likely to sell using FHA financing, that a case number needs to be ordered by NOVEMBER 1 because November 2 IS the date that everything starts all over again. 

Nothing else has changed!  If you want to learn what needs to be done to get the condo projects approved in your area, Tracey Rumsey (FHA expert and one of the speakers at Mastermind) has an online seminar, with step-by-step details on what you need to do. 

here\’s the link
http://www.hud.gov/offices/hsg/sfh/hsgsingle.cfm

www.LoanOfficerSeminars.com - which inlcudes a Mortgage Talking Points Flyer/email notice for your real estate agents called Tough TImes Ahead for Condos!

Did you know that as of October 1, 2009, the FHA spot loan approval process for condo loans has been eliminated?  And that MOST condo project approvals will be invalid after that date too?

It’s gonna’ be UGLY–and the only projects that will remain on the list are those that have been approved after October 1, 2008.

If you have any FHA buyers on the fence, looking for just the right condo to purchase, they need to do something or they won’t be able to buy a condo - period - at least for a while.  Real estate agents need to advise condo sellers that FHA financing is going to be limited.

A new online seminar can now be viewed at www.LoanOfficerSeminars.com called “FHA Condo Approval Process: What You Need to Know” with audio, slides and all FHA supporting resources.

Mortgage Talking Points(tm) Flyer and email notice also included. 

Just when you thought things were getting better–the government takes it away!