Rumford - Shamrock Financial Corporation is working diligently to apprise local Real Estate Agents, Condominium Management Companies and Condominium Owners of the HUD Condominium Guideline changes effective November 2, 2009. Shamrock Financial is a direct government sponsored FHA lender dedicated to putting the needs and concerns of our clients and referral partners above everything else since its inception in 1989. Shamrock Financial is hosting weekly webinars and offering action plans for immediate implementation.
Here is a brief overview of these impactful changes affecting all FHA case numbers issued after November 2, 2009:
1. Elimination of “spot approval.” In order to obtain FHA financing, the project’s HUD approval MUST be complete.
2. Presently, 40,000+ condominium projects are approved. On November 2nd, 36,000 of these projects will be terminated (90%) unless recertified prior to deadline.
3. Two- unit and Three- unit projects will be allowed (with full HUD approval). However, only one unit can have an FHA loan. (First come, first served.)
4. No one investor can own >10% of units in project.
5. Project must be >50% owner occupied.
6. No more than 15% of owners can be in arrears for homeowner’s association dues.
7. A max of 25% of units can have commercial influence.
8. Right of first refusal will be allowed unless it is deemed discriminatory.
9. The number of units allowed FHA financing in an approved project will be capped at 30%. (The issuance of a case number is imperative.)
Shamrock Financial Corporation expects that these changes will cause HUD to become extremely busy, making turnaround times for Condominium projects’ HUD approvals to take months versus weeks.
The company’s goal is to assist as many projects as possible in becoming HUD approved prior to the November 2nd deadline. Rod Correia, President of Shamrock Financial, stated, “These changes are catching a lot of individuals by surprise.”
High Rocks Condominiums, assisted by Shamrock Financial Corporation, is now the first Condominium project in Rhode Island to be listed as HUD Approved based on the new guidelines. The High Rocks Condominiums’
Anyone that is seeking more information, has questions or would like to get started on the appropriate action plan can visit www.shamrockfinancial.com/
