HUD Condominium Policy
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/
HUD has published two mortgagee letters: ML 2009-46A and ML 2009-46B. ML 2006-46A provides temporary changes to FHA condominium policy until December 2010. The key points are:
* The "Spot Loan" Approval process will be eliminated but not until February 1, 2010 (case numbers assigned) to facilitate a transition. FHA believes that this change is not as significant as many think but was willing to delay implementation until February 2010.
* Concentration levels: 50% new construction; 100% existing construction. Existing construction is defined as a project must have been completed for at least a year, as evidenced by issuance of the final or temporary certificate of occupancy of the last unit conveyed.
* Owner occupancy: 50% (Vacant or tenant occupied REO may be removed from the calculation (numerator and denominator)
* Lenders may now submit approval requests under either processing option. Lenders that are eligible for the Direct Endorsement Lender Review and Approval Process (DELRAP) may have HUD process condominium approvals at the lender's discretion.
Tax Credit Details
As you know, the tax credit was signed last Friday and was effective the next day (day after enactment) for the key provisions. NAR provided us w/ the following information. The highlights are:
* Tax credit is extended until April 30th 2010
* Sales contract must be signed by April 30th. (60 days to close)
* Effective for loans closed November 7th
* Sales price increased to $800,000
* Higher income limits - $125,000/$225,000
* Repeat borrowers' eligible IMMEDIATELY:
* Have lived in previous home 5 of last 8 years
* Must purchase new home as principal residence
* Can buy smaller house - do not have to sell current home
Accordingly, someone who meets the criteria above and closes on the purchase of a home today is eligible for the $6,500 tax credit.
If you have any questions or would like to discuss this situation further, email Tim James at drtimjames@prusd.com. We are standing-by to help.
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