New FHA Condo Guidelines Delayed

I just received news that the FHA condominium approval changes that was originally scheduled to go into effect on October 1st, but was then delayed to Nov. 7th, has once again been delayed until Dec. 7th?!

The letter from HUD states:

“Implementation of FHA’s new policy guidance for condominium project approval and condo unit financing will be delayed until December 7th 2009. The new guidance, to be issued within the next two weeks, will: 1) offer additional leniencies to address the difficult market conditions and 2) augment some portions of FHA Mortgagee Letter 2009-19, providing additional information and clarification.”

This is very good news! It seems someone is finally realizing how these changes have the ability to kill an already struggling condo market.

Hopefully in 2 weeks I will have more details to report! Until then, let’s just sit tight and cross our fingers that the changes will help enough! And for at least a little while longer…the “spot approval” still exists!

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