Opinions, Comments and Information on Mortgage & Real Estate Market topics…plus some Coaching…

Here are the 5 things you need to know about these changes:

1. These temporary changes are effective on December 7th, 2009 through December 31st 2010; except for Spot Loan Approvals.

2. Spot Loan Approvals will be eliminated as of February 1st, 2010.

3. FHA loan concentration may be increased to 100% if the following criteria are met:

• Project construction has been 100% complete for at least 1 year
• All units have been sold and no single entity owns more than 10% of the units
• Project holds 10% of the budget in reserves for capital expenditures and deferred maintenance
• Control of Home Owner’s Association has been transferred to the owners, and e. Owner-occupancy is at least 50%

4. FHA requires a 50% owner-occupant ratio but bank-owned units that are either vacant or tenant-occupied are not required to be included the calculation.

5. New construction pre-sale requirement is temporarily reduced to 30%.

Read these letters in full.