Notice Of Delay In FHA Guideline Changes For Condominiums

Implementation of FHA’s new policy guidance for condominium project approval and condo unit financ¬ing is delayed until December 7th 2009. The new guidance which will be issued within the next two weeks will:

1) Offer additional leniencies to address the difficult market conditions and

2) Augment some por¬tions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.


Until the new guidance takes effect on December 7th, 2009, lenders may continue to use the Spot Loan Approval guidance issued in Mortgagee Letter 1996-41. Further, the site condo and manufactured housing condo project changes already implemented are unaffected by this delay.
To read FHA Mortgagee Letters 1996-41 and 2009-19 please visit: http://www.hud.gov/offices/adm/ hudclips/letters/mortgagee/