The Federal Housing Agency (FHA) recently announced extensions to the approval dates for condominium projects that were previously set to expire Dec. 7, 2010. 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.
Under the new regulatory changes, condominium/townhome developments must be preapproved with the Dept. of Housing and Urban Development (HUD) in order for an FHA loan to be granted. FHA loans currently represent almost half of all new mortgages nationwide. Failure of a development to be preapproved and eligible for FHA loans will almost certainly impact the marketability and value of the development.
From C.A.R. Newsline