A. The guidelines for submission of Condos are set forth in HUD Handbook 4150.1 Rev-1, Chapter 11. Generally, the necessary documentation is submitted to HUD by a mortgage lender. Since most mortgage lenders are familiar with the information necessary for HUD to process the request, we strongly recommend that individuals, such as buyers and builders, use the services of a lender to make the submission. Copies of the handbook can be obtained from our Internet page at http://www.hudclips.org or may be ordered by calling (800) 767-7468.
Condo Approval Professionals (CAPs)
Lindsey Bishop is correct in stating HUD guidelines below. What prevents this from happening in most cases is the appraisals come back too low. So the builder/developer has no choice than to rent out the condos, until such time he can at least break even. At that point- firms such as mine, AmericaHomeKey Inc. can convince the builder/developer into letting these renters out of their leases to purchase and credit back rent for up to 2 years if they qualify for loans with us. Once we have at least 51% occupancy between old renters and new buyers- and all physical FHA building requirements are met, we submit the paperwork and get FHA approval. It can be a very lenghthy process.
Hope that answered your questions,
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