Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

My Condo’s FHA Approval Expired – Can I Still Close?

Notify me of new replies via email
RSL Condo Team | 19 Aug 2014, 10:51 AM Agree 0
As an FHA Condominium Project Consultant, I do not typically get involved with the “mortgage level” side of things. That is, once I get the project approved with FHA, I have nothing to do with helping a borrower obtain a mortgage in the project.

One question that I frequently entertain from mortgage officers is: “if I have an FHA case number and the project’s approval expires prior to closing, can we still close the mortgage?”

The answer is “it depends if the criteria is met found on pages 49-50 of the Guide.”

The “Guide” is the Condominium Project Approval and Processing Guide,, that was released as part of ML 11-22. Pages 49-50 reference the Mortgagee (lender) Certification requirements.

It states: “If a project is currently or was previously approved, the mortgagee must certify that it has reviewed and verified the investor ownership, percentage of owners in arrears for condominium association fees, and owner-occupancy ratio.”

This requires mortgagees to sign Appendix B of the Guide which makes certain certifications to HUD. One such certification is that the condominium project was on FHA’s approved condominiums list when the case number was assigned.

The remainder of the certification itself reads similarly as the certification that is signed by the HOA, property manager, developer or project consultant on the project level side, that is, before the project is approved and placed on FHA’s approved condos list.

Additionally, the Guide states that Appendix B must be signed by a representative of the mortgagee that is authorized to bind the company when the mortgage approval decision is made and it must be signed within 30 days prior to the date of the closing. It cannot be signed after the mortgage has closed.
Eric Boucher

FHA/VA Condo Approval Specialist, RSL Condo Team

T404-433-4565 F860-644-3772
Post a reply