Back in November 2009 when HUD issued new guidelines for FHA condo mortgages, one of the items that many people hadn’t taken much notice about was the recertification provision. Under the new guidelines condos must be re-certified every two years for HUD/FHA approval. Condos that were approved prior to implementation of the new guidelines were given a transition period to obtain recertification…the expiration of the transition period is now fast approaching.
Condominiums that obtained FHA approval prior to October 1, 2008 will need to be recertified by December 7, 2010 or they will lose their FHA approval status.
Fortunately, recertification can be a relatively simple procedure through either FHA’s HRAP or DELRAP approval processes. HRAP approval is done directly with HUD and can take up to 6 weeks; DELRAP is through a direct endorsement lender and can be completed within a week or two, provided the condo conforms to FHA guidelines.
If you own a unit in a condo building that obtained FHA approval prior to October 1, 2008, time is of the essence to secure recertification for your condo building. Losing FHA approval will make your condo less attractive to buyers as FHA mortgages have become increasingly popular option for buyers over the past few years.
The Seattle Condo Blog’s mortgage associates can help you with the recertification process. Mortgage Loan Officer, Dan Keller, outlines and provides important links in his FHA recertification process posting.
Find FHA approved condos: https://entp.hud.gov/idapp/html/condlook.cfm
Update 1/6/2011: For a number of properties (not all) FHA has extended the expiration for six months.