Tuesday, June 23, 2009

No More Spot Approvals for FHA Loans

HUD has done away with their "spot approval" process for condominiums. A spot approval was a way to get just one unit in a condo project approved by HUD so the buyer could get an FHA loan.

Effective June 12, 2009, FHA loans are not available for condos unless the entire project is approved by HUD. What does this mean? If your buyers can only get FHA financing, don't waste your time showing them condos that are not already approved by HUD, unless you are willing to spend a LOT of time gathering the documentation that is necessary to get an approval for the entire project.

If you want to check whether a particular project is approved by HUD, go to this web site:

https://entp.hud.gov/idapp/html/condlook.cfm

Choose the state and type in as little information as possible in the "condo name" field (we recommend just the first letter of the condo project name). Then click on SEND and you will get the results. If you need help, give us a call.

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