Seattle FHA Condo Recertification 2010 | Process Overview & Checklist

In about a month, all condominium complexes in the State of Washington will be required to re-apply for their HUD/FHA condo approval.  This is a hot topic lately among real estate agents and HOA committees, specifically because it relates directly to the future success of buying and selling condos in their respected communities.

My intent with this blog is to indentify for real estate agents and HOA committees a step by step process of the recertification and re-approval process, as well as to explain some important facts surrounding the changes to come.  You may also want to reference a previous blog where I explained FHA condo guidelines and share and overview of the condo re-approval process. 

Recertification Process
Condo projects that were approved by FHA on or after January 1, 2000 are eligible for the recertification process. Once a condo is recertified, the updated project approval status will be valid for two years following the new approval date.

Recertification packages can  be submitted by the following entities:
Lender (authorized lender staff)
Builder/Developer
Homeowners Association/Management Company
Attorney or Project Consultant who submits on behalf of one of the other referenced (named) parties. 

Packages may not be submitted by Borrowers, Sellers and/or Real Estate Agents.

All documentation and information required on HUD’s Condominium Recertification Cover Letter/Document and Checklist must be included in the request for recertification review. Lenders may elect to use their own form; however, it must contain all of the same information required HUD’s sample form.  I have put together a complete packet for you to view HUD’s Condominium Recertification Cover Letter/Document and Checklist.   If this link is broken, CLICK HERE

IMPORTANT TO NOTE:  Full Project Reviews
It is important to verify that all condominium projects that were approved by FHA prior to January 1, 2000 will require a full project review for new approval. Once approved, the new approval status will be valid for two years following the new approval date.

Refer to Mortgagee Letters 2009-46A for full review eligibility and requirements. 

Reasons Why A Project May Be Ineligible:
If an approved project is not re-certified within  six months following the approval expiration date, the project is no longer considered eligible for recertification and full project review is required for new project approval.

Projects that include manufactured housing must be submitted to the appropriate HOC for review and approval. Lenders are not authorized to recertify or issue full review project approval on manufactured projects.

Projects that reflect a rejected or withdrawn status are not eligible to be recertified or reviewed via lender/DELRAP and must be submitted to HUD HOC full project approval using the HRAP processing option.

If the project recertification request is rejected or withdrawn, follow the requirements of Section X. General Processing Steps for DELRAP or HRAP, Item E in regarding how to handle subsequent submissions. 

Projects containing rent stabilization or affordable housing units must be processed using the HRAP option. These projects are ineligible for recertification processing under DELRAP.

Leave me a message below if you would like my help in getting your condo complex recertified for FHA financing.

About the Author | Dan Keller

Hi, I am Dan Keller, (NMLS # 115349) I am an active Mortgage Advisor with Cornerstone Home Lending in the Seattle area. I am also a mortgage educator, writer and speaker who's passion is providing transparency and education to home buyers and home owners. You can always contact me via e-mail me at dkeller@houseloan.com or call me directly at (425) 350-7136. - Click here --> for a FREE Rate Quote and more info on my Home Buyer Education Circuit. I love helping my readers!

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