Wednesday, September 29, 2010 - Article by: CERTIFIED FUNDING CAPITAL CORP. - Certified Funding Capital Corporation -
As authorized with the passage of the Housing and Economic Recovery Act of 2008 (HERA), the Federal Housing Administration (FHA) implemented an approval process for condominium projects and insurance requirements for mortgages on individual units, under Section 203(b) of the National Housing Act.
The new approval process and insurance requirements were put into action with Mortgagee Letter 2009-46b and was effective for all case numbers assigned on or after December 7, 2009, except as noted in the mortgagee letter.
The program insures a loan for as many as 30 years to purchase a unit in a condominium building--which must contain at least two dwelling units and can be detached or semi-detached, a rowhouse, a walk-up, or an elevator structure.
The loan is made by a lending institution, such as a mortgage company or bank and is insured by
HUD's Federal Housing Administration
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