Home Buying in Atlanta>Question Details

Ryan, Home Buyer in Atlanta, GA

If a property's FHA approval is about to expire, will my sale be valid if I have an FHA case number assigned before the expiration?

Asked by Ryan, Atlanta, GA Mon Mar 25, 2013

I am interested in buying a condo in a building that is FHA approved through 31 March 2013, but my closing date isn't until April 17th. If I have an FHA case number and appraisal done before the expiration, will the sale be valid if the property allows its FHA approval to expire?

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Answers

9
To be honest, I don't know how they will handle the case numbers already in effect, but lets assume the worst for a moment. The case numbers last for 6 months, so even if you canceled now, and the case number stuck, it would be worth waiting the 6 months for a substantial savings, so I don't understand his advice. If you qualify for the reduced UFMIP and MIP, it's a no-brainer that you should wait until after June 11, and up to 6 months if need be.

Web Reference: http://fhamortgageinfo.com/case-number/
0 votes Thank Flag Link Yesterday at 2:35am
Good Info Becky found on Active Rain, but, unfortunatley all HOA's are not beginning to pursue recertification - I did one of the last spot approvals in Atlanta before HUD disallowed spot approvals and it required a ridiculous amount of work on my part - that the HOA did not want or know how to do. One question alone took a lot of data digging - What percentage of the 320 units currently have an FHA loan?

It makes no sense not to get certified or recertified because without that approval, individual owners ability to resell their units is quashed - sometimes HOA's require a push from an individual agent or homeowner to do the work needed.

To see if any condo is FHA approved go here: https://entp.hud.gov/idapp/html/condlook.cfm

Best,

Robert Whitfield
Broker/Owner
Professional Buyers Broker
New Home Construction Expert
ICC Code Certified Building Inspector
Advantage Realtors
678-585-9691
RobertWhitfield.com
TheHomeBuyersRep.com
Corporate Relocations | New Construction | Luxury & Investment Properties
0 votes Thank Flag Link Sat Mar 30, 2013
As you may or may not be aware, one of the major changes announced last year by HUD/FHA in HUD Mortgagee Letter 2009-46B is that

all condominium projects that were initially approved prior to 10-1-2008 will expire as of 12-7-2010 and going forward all others approved after 10-1-2008 will expire upon the 2 year anniversary of their approval or last recertification.

Thus many thousands of condominium projects will soon expire within the next month.

You can order case numbers on any approved condo project prior to their expiration date and still close after the expiration date (provided all is met for the project review required for each individual loan).

After the expiration date no further case numbers will be issued until the project is recertified, and they have up to 6 months after the expiration to get recertified, UNLESS the project was initially approved prior to 1-1-2000. These projects initially approved by HUD/FHA prior to 1-1-2000 are not eligible for recertification and must be submitted for HUD/FHA project approval as a full submission the same as if they had never been HUD/FHA approved. Also projects that were initially approved by HUD/FHA after 1-1-2000 but do not get recertified within 6 months after their expiration date, will then also have to be submitted to HUD/FHA as a full submission the same as if they had never been approved by HUD/FHA.

Most HOA management companies across the country are aware of this situation and beginning to pursue recertification for projects, but there is no specific notification to individual condo projects to the best of my knowledge. Thus you may want to approach the contact people at condominium projects that you have worked with in the past, have an established relationship with, and/or hope to work with in the future that are currently FHA approved, but expire soon and would still benefit from having FHA financing available. Hopefully this can be a benefit to you for developing additional volume and relationships. Great Question- but I would eith call HUD or a desktop underwiter with a mortgage company. -My comments came from "Active Rain" Good luck. Looks like if you have a cae number your will be more than likely to close.
0 votes Thank Flag Link Fri Mar 29, 2013
Great question!!!!

If the approval expires prior to your loan funding, you may NOT be able to fund.

Now, that being said if your lender has a condo department that works closely with HUD they may be able to do a lender direct FHA approval. This means the lender will submit the documents to FHA for the HOA and get the approval renewed. (this can be done rather quick) providing the development still meets the FHA approval requirements.

The HOA may also be in the process of getting their status re-approved , but that can take much longer.

If the complex NO LONGER meets the guidelines for FHA approval, you will be out of luck , no matter who submits the paperwork.

Best Of Luck to you!
Kawain Payne, Realtor
0 votes Thank Flag Link Fri Mar 29, 2013
You should check with you lender on this. I also think you should check with the HOA to see if they have any plans of renewing the approval.
0 votes Thank Flag Link Mon Mar 25, 2013
My lender says "The case # needs to be assigned prior to the condo expiration date." I checked with the HOA and the best they could tell me is that their attorney is working on it.
Flag Mon Mar 25, 2013
Hi Ryan,
That is really a question that you should be asking your loan officer. As long as you have a property under contract and the FHA Case # ordered PRIOR TO the expiration date, you may be ok. Even on FHA Approved projects, a condo cert must be obtained on every transaction to ensure the project still meets FHA standards.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203K Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Mon Mar 25, 2013
So my lender says they will back the loan so long as the case number is assigned prior to the expiration date. However, I still worry about the condo questionaire and meeting FHA standards. Statements like "you may be ok," really make me feel like opperating on the word of the lender might not be good enough (even if I have their word in writing).
Flag Mon Mar 25, 2013
Ryan,

Contact your lender imediately about your question. You should count on everything being rechecked and re-verified before closing.

Best,

Dave Herren
Best Atlanta Properties
404-425-4945
0 votes Thank Flag Link Mon Mar 25, 2013
Ryan, I suggest you ask your lender that question ASAP and have them confirm their answer in writing.

Good Luck.

Robert Whitfield
Broker/Owner
Professional Buyers Broker
New Home Construction Expert
ICC Code Certified Building Inspector
Advantage Realtors
678-585-9691
RobertWhitfield.com
TheHomeBuyersRep.com
Corporate Relocations | New Construction | Luxury & Investment Properties
0 votes Thank Flag Link Mon Mar 25, 2013
You need to talk with your mortgage consultant about this ASAP. You will not be allowed to close a FHA loan on a property whose approval is expired regardless of when the case # was assigned. The good news is that it is not difficult for the HOA to have the community's FHA approval re-newed. This will have to be completed prior to your close date.

Sincerely,

Chris Irvin
Mortgage Banker
Brand Mortgage
NLMS 75615/465546
678-251-7889
cirvin@brandmortgage.com
http://www.chrisirvin.com
0 votes Thank Flag Link Mon Mar 25, 2013
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