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The Federal Housing Administration is implementing a new approval process for Condominium projects to insure mortgages on individual units under the National Housing Act. FHA will now allow lenders to determine the projects eligibility, review project documentation, and certify its compliance of HUD's regulations. This becomes effective October 1, 2009. There is increased paperwork and a long list of new guidelines.
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Wednesday, July 22nd, 2009 at 12:12pm.151 Views, 0 Comments.
On June 12th The Federal Housing Authority (FHA) issued Mortgagee Letter 2009-19 announcing major changes to their Condo Approval Process.
"In accordance with the passage of the Housing and Economic Recovery Ace (HERA) of 2008, the Federal Housing Administration (FHA) is implementing a new approval process for Condominium projects to insure mortgages on individual units under Section 203(b) of the National Housing Act. FHA will now allow lenders to determine projects eligibility, review project documentation, and certify to compliance of Section 203(b) of the NHA and 24 CFR203 of HUD's regulations. Hud will continue to maintain a list of approved…read more
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