According to the National Association of Realtors, 23,000 condo projects are on the verge of losing their eligibility for FHA-guaranteed sales and refinancing after 2,200 projects have already lost eligibility.
The FHA set standards last year that require condominium projects that are FHA approved before 2007 to renew their approvals by December 7, 2010 and NAR projects roughly 25,000 have missed the cutoff date.
Given the staggering number of projects that did not renew, FHA extended the deadlines out to 2011 but the 2,200 projects with the oldest approvals became ineligible this month.
With so many projects being stripped of FHA eligibility, the condo market could look a little different in the coming year having taken this hit. It will be interesting to see at the end of next year how the number compares to the current 2,200 ineligible projects.
To check the status of a condo project, visit the HUD website.
Fred Glick
December 15, 2010 at 3:37 pm
It’s too bad that too many real estate agents don’t understand mortgages.
The good ones do not waste their time showing unapproved condos.
I, with my lender hat on, can get condos FHA approved within 90 days for less than $1000.
For the right condo, I would partner with a real estate agent to get it done and then we become the heros when there are then more buyers for the units and the values go up!
Fred Glick
usloans.com