We process FHA submissions in house and submit them to the Department of Housing and Urban Development (HUD). Their review will likely take 30 to 45 days.
FHA condominium approvals are valid for the entire project for two years. Prior to December 2009, once approved a condo was always approved, but that is no longer the case. VA approvals are still permanent approvals.
There are three types of FHA approvals:
- If a condo is already FHA approved, then we simply need to have the management company complete a condominium questionnaire and document the condo master insurance policy. No other documents are…
The Department of Veterans Affairs (VA) requires they review and approve a condominium prior to financing a loan in each condo project. The VA approval does not expire and can be accomplished in a matter of weeks.
Here are the requirements for submission, and we will work with the condo board or its management company to compile the necessary docs:
All of the following items are required:
1. A cover letter requesting approval must accompany the package. This letter is to include:
A. Point of Contact’s name, address, and telephone number
B. Project name and complete address
C. Number of phases in project / Number…
A Condo Project Manager (CPM) approval is the most common type of condominium association approval because it is automated. The CPM is Fannie Mae software to review whether a condominium meets requirements and is utilized for both new and existing condos. A CPM approval is good for six months, though some of the required documents will expire and will need to be updated.
Freddie Mac does not have an automated approval process.
Questions? Ajaffe@firsthome.com or 240 479 7658
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Fannie Mae has a Project Eligibility Review Service (PERS) approval option which is useful in the following three scenarios:
- Non-gut condominium conversions
- New projects with units under 400 square feet (micro units)
- Condo project consisting of manufactured homes
A PERS approval is a submission to Fannie Mae, and often avoided unless one of the above conditions apply. This is because if a project is eligible for a CPM approval, A PERS approval is good for 1.5 years and the average amount charged by Fannie Mae for the application is $2,500 per 30 units in the condominium association. This approval is something a developer…