We’ve talked a lot about FHA and FHA in relation to Florida condo financing, and condo financing as it relates to FHA approvals and Florida condo mortgages…and round and round we go.
Well, once again, we’ve got the two sharing a headline as a bunch of current FHA approvals are set to expire shortly. This could obviously affect homeowners and Realtors with condos listed for sale.
Just to back up a bit:
- In order to obtain FHA financing on a condo unit, the condo project in which the unit exists must be approved by FHA.
- Our friends at FHA recently switched to a program where those approvals need to be periodically renewed.
- Condos that had been approved before late 2008 were originally scheduled to have their approvals expire on December 7, 2010.
After realizing that forty years worth of approvals were all set to expire on the same day and could result in FHA being overwhelmed with renewal requests, FHA announced plans to stagger the expirations.
So today, FHA announced the Official Schedule that itemizes those staggered expirations. Basically, the new expiration date will be pushed back anywhere from 3 weeks to 9 months based on the date when the project was initially approved. The following are the extended expiration dates:
Approved 1972-1980: Expire 12/31/10
Approved 1981-1985: Expire 12/31/10
Approved 1986-1990: Expire 05/31/11
Approved 1991-1995: Expire 07/31/11
Approved 1996-2000: Expire 08/31/11
Approved 2001-2005: Expire 09/30/11
Approved 2006-2008 (Sept): Expire 03/31/11
In FHA’s own words:
The extensions were granted to reduce the impact of processing and reviewing the number of project approvals expiring at the same time while recognizing current housing market conditions. Lenders and/or other interested parties are encouraged to begin the re-approval or recertification process as early as possible as it is not anticipated that any further extensions of project approvals will be issued.
Here is the website where you can check to see if your condo development is FHA approved, or if it is, when the approval expires.
As always, give me a call if you have any questions…never a dull moment in this industry.