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.