Condo Lending In 2010
The good news is we ARE doing condominium loans in Atlanta Georgia!
FHA:
You can get a NEW PROJECTS approved for lending through the end of 2010.
The 2 options for this are:
1) Delegated Review- SunTrust can perform this for FHA- 30 days approx turnaround (DEL RAP)
2) Full Review by FHA- if we don’t get a clear picture we will send directly to FHA- 6 weeks turn-around (H RAP)
For EXISTING PROJECTS: (this process is in place till end of 2010)
1) We review the FHA list (yes there is still a list) and it will tell us what data we need to collect to “Re-certify” the project (5 days)
2) If not on the list, we can Re-validate the project (21 days)
Conventional:
We will check the Fannie Mae list (yes there is still one, small though). We will also check our SunTrust approved list.
If not on either, we approve Fannie Mae condo’s in house. This will take 7-10 days.
We usually need condo doc’s and HOA contact phone number. At a minimum please send the HOA contact.
We can do Fannie with 10% down and I think we will soon have PMI companies allowing 95% again.
Gotcha’s: These are the things that will cause trouble in approving the complex.
1) The insurance policy has a term that expires within 30 days of closing
2) The policies are in the name of the management company, not the HOA
3) Fidelity coverage (employee theft) is less than the Fannie requirement of 3 months of HOA plus reserves.
4) The project is in litigation
5) The dues or delinquent by 15% for 30 or more days
6) H06- GA law states that HOA is to cover the bare walls…a lot of projects don’t do this. I will walk your client through getting this coverage for 10% of value
7) If the HOA is in the middle of collecting for special assessments (we will need detailed info on the reason for it).
***Right now, FHA is allowing that 100% of the loans in a project can be FHA- this is through the end of 2010 then drops to 30%.
I know some of you have heard this change is occurring this year. We see now that’s not the case.
Julie Beaty
2008 Chairman’s Team
Vice President | SunTrust Mortgage, Inc.
404-456-1725 (o) | 770-551-4819 (f)
Apply online here! www.suntrustmortgage.com/jbeaty
