In November 2009, HUD issued new guidelines for FHA condominium mortgages, and one of those new guidelines was the re-certification process. Under the new rules, condo buildings must be re-certified every two years for HUD/FHA approval. Why is this important? Well, here in Tampa, from the looks of things, not every building has re-applied for certification! Not all Tampa condo buildings currently have FHA approval, and for the ones that do, it means you can buy a unit in that condo building with an FHA mortgage which requires only 3.5% down payment. Otherwise with no FHA backing, some lenders will not provide even conventional financing on a condo, and to purchase one you must have cash only. This is not good for buyers, or for the condo projects if the only people who can afford to buy them are cash buyers which will drive down the values in the buildings. The expiration of this new transitional period for the new guidelines is rapidly approaching.
Condominiums that obtained FHA approval prior to October 1, 2008 will need to be recertified by December 7, 2010 or they will lose their FHA approval status.
If you are currently interested in a condo, you can, however, have your mortgage lender order an FHA case number on any of these currently approved projects prior to 12-7 and still close after the expiration date (provided all is O.K. on the project review required on each individual loan). These projects will have 6 months to get recertified, but no case numbers will be issued until they are. If the project fails to get recertified within the 6 month period, a full new approval package must be sent to HUD.
To check if a condo you are interested in has FHA approval, and when that approval expires, check the HUD condo website.
The Towers of Channelside, the luxury high rise condos in Channelside were approved several months ago to offer FHA financing and these are going to go very quickly. With 1 bedroom units starting as low as the $170′s and availability up to penthouses under $1 million – this is a great luxury building to be in but you will have to really hurry to take advantage of the great deals and financing here because there is a line of buyers forming quickly. Baseball player Evan Longoria is an owner here, move right in and rub elbows with the celebs!
Parkcrest Harbour Island is also an FHA approved development.
Condo projects currently not qualified for FHA financing are:
- Grand Central at Kennedy
- The Place at Channelside
- The Slade Condos (however HomeBanc is offering 95% conventional financing in this building!)
Contact us today to schedule showings at these and other Tampa condo buildings. Would you like listings emailed to you automatically? Interested in buying or selling a condo unit in the Tampa area? Contact Liane Jamason at Keller Williams Realty today at 813-486-4997.