Lendisphere

Can I finance this with an FHA loan?

So you want to buy a condo using FHA financing?  Better do it quick.  Because as of October 1, HUD is changing the rules in a big way.  No more can your lender go to FHA’s own project approval site – the responsibility of determining project approval is now being handed over to the lender, and THAT is the kind of responsibility no lender is going to risk. 

Rather than simply consulting HUD’s list, as we have in the past, the lender is now required to accumulate all the project legal documents, contracts, conveyances, plats, plans, insurance coverage, presale and owner occupancy conditions and other documentation in connection with their review and approval of the condominium project. 

That ain’t gonna happen, people.

Because if one shred of all that documentation gives an indication the lender shouldn’t have lent in that project, the fines will be STIFF.  So investors are going to see a loan application secured by an FHA loan, and they are going to run the other way.

If you need FHA on your condo, better git it now, while the gittin’s good.