A sign of the times! http://ow.ly/i/cFGE

A sign of the times! http://ow.ly/i/cFGE9

We’re having an issue with a condo comm

We’re having an issue with a condo community where we represent the buyer and now find out the FHA Certification has expired. It’s becoming a big issue since FHA now requires communities to get re-certified every two years, and they do not send a reminder that they are expiring. The re-cert process should start approx. six months prior to expiration to ensure continued eligibility. Although its not a rubber stamp. The website to check a community is: https://entp.hud.gov/idapp/html/condlook.cfm

Here’s a little more on the process:
Takeaway: FHA certification makes it easier to sell units in your condominium association. Applying for FHA certification has become more straightforward recently.

What is the FHA certification program? The Federal Housing Administration will insure certain mortgage loans on condominium units in a certified condominium association. Obtaining FHA certification, so units can be sold to FHA approved buyers, is an attractive benefit for buyers and also permits selling unit owners to market their units to a greater pool of potential buyers. The FHA program permits buyers to put down as little as 3.5% as opposed to the typical 20%. The lower down payment attracts many first-time buyers, who still must meet separate FHA approval requirements on their own.

Certifying a condominium association: No single unit can receive FHA finance or refinance unless the entire condominium association has been approved. The days of “spot approval,” where an individual unit could receive its own FHA approval, are long gone. A condominium association can receive certification issued either by an FHA staff member through the HUD review and approval process (also known as HRAP) or by an FHA-approved mortgagee through the direct endorsement lender review and approval process (also known as DELRAP). The HRAP option is by far the most common, and this is the where the condominium association, through its managing agent, board of directors, outside third party servicer, and/or attorney, prepares the certification application by answering all questions listed on HUD’s certification cover letter/document and providing all requested documentation.

Renewing your certification: FHA certification must be renewed every two years. It is important for condominium associations to monitor the expiration date since the FHA will not notify you that the certificate is about to expire. Condominium associations must recertify no earlier than six months before the expiration date and/or no later than six months after the expiration date. In the event there is a lapse, the certification process is identical to the recertification process.

What the association needs to be certified: In the fall of 2012, the Federal Housing Administration revised its condominium project approval guidelines, which modified and supplemented the previous requirements contained in Mortgagee Letter 2011-22. These revisions are contained in Mortgagee Letter 2012-18 and will be effective until August 31, 2014.

What has not changed: The association needs to submit:
Its delinquency rate
Its investor-to-owner ratio
Proof of the association’s fidelity bond coverage
Explanation regarding any special assessments and/or pending litigation involving the condominium association
Its recorded governing documents, current budget, reserve account balance, FEMA flood map, management contract, and insurance declaration page
New requirements:
Mortgagee Letter 2011-22 previously placed a cap of 25% on the total commercial space permitted to be in an FHA approved project; the 2012 Mortgagee Letter now permits FHA to consider projects with commercial space between 25% to 35%
In addition, mixed-use condominiums with commercial space up to 50% will also be considered, but substantial, additional documentation will be required
Under the 2011 Letter, no more than 15% of units could be more than 30 days past due; the 2012 Letter allows 15% of the units to be as much as…

As Realtors, we are definitely leaders,

As Realtors, we are definitely leaders, even if we are only leading ourselves some days! So here is some excellent advice from a pretty good leader… “A leader, once convinced a particular course of action is the right one, must have the determination to stick with it and be undaunted when the going gets rough. ”
— Ronald Reagan, 40th U.S. president

http://ow.ly/i/UGuL http://ow.ly/i/UGyb

http://ow.ly/i/UGuL http://ow.ly/i/UGyb

Must be the full moon! Another Louisvill

Must be the full moon! Another Louisville Realtor has come on board with Breland Group Realtors! Curtis Owens has been selling Louisville since 1993 and is having a great year! You can connect with him at (502) 817-6921 or curtiseowens@yahoo.com . Welcome to the team, Curtis! http://ow.ly/i/TEOs

We’re excited to anounce that Nancy “K

We’re excited to anounce that Nancy “Keith” Cooper has joined the BG Team. Give her a call or text at 270-945-6085 or email her at coopersells@ymail.com . Her website is http://www.coopersells.net/ . Licensed to sell since 1992, she brings a bunch of experience to her clients! Welcome, Nancy! http://ow.ly/i/TmrY

This is a good article on the future of

This is a good article on the future of real estate at the National level. Well worth reading! http://ow.ly/cmP6H

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