Financing Condo’s in Georgia is Getting Tougher

condoOn February 1st a new FHA ruling took effect regarding condos.  A Condominium has to be approved by FHA in order to allow for FHA Insurability.  There is a list that lenders check to see if condo project is approved.  If the project is not approved, lenders would try to get a “spot approval,” so that we could proceed with the loan.  Spot approvals are now, no longer allowed.  HUD decided they did not want to be in the business of approving condos anymore, so they put the burden back on the lender.

The process of approving condos can be very expensive and time consuming, so lenders are trying to figure out how to best handle this.  If you are considering buying or selling a condo, this is something you will need to research upfront.  This change is a major opportunity for condo complexes that are already approved.  Agents need to advertise the fact that their condo is FHA approved.  If you need help figuring out if a condo is approved, contact me and I will look it up for you.

Getting a condo FHA approved that is not on the list can take up to 6 weeks.  Agents need to find out right away if a Georgia condo is approved before listing a condo or showing a condo.  A lot of condos are not on the list.  I would dare to say more Atlanta condos are not on the list than are.  Call me today to find out.

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