FHA issued Mortgagee Letter 2011-03 on January 5, 2011. This mortgagee letter is beneficial in that it extends the following criteria until June 30, 2011.
- Concentration Levels: May be up to 100% if
- The project is 100% complete for at least 1 year and;
- 100% of units are sold to 3rd parties.
- Owner Occupancy: At least 50% of units must be owner occupied; vacant or tenant occupied REO’s are excluded.
- Pre-Sale: In new construction, 30% of the units must be pre-sold.
If your condominium community has yet to receive FHA certification, our newsletter article, What your Condominium Association Should Know About FHA Lending Guidelines, explains what is necessary. These criteria may be modified after June 30th, 2011, so we recommend you submit prior to that time to insure your current practices are still appropriate.