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 Approved Condominiums.

https://entp.hud.gov/idapp/html/condlook.cfm

GENERAL REQUIREMENTS FOR APPROVAL

A. Presale Requirements. In order to assess the marketability of

the units, the Field Office will require that 70 percent of the

total units be sold before endorsement of any unit mortgage.

The presale could be reduced to as low as 51 percent with the

approval of the Field Office if there is an active market for

the units. Generally, presales apply to proposed or newly

constructed projects. However, in an existing project where

the developer is still marketing units, the same presale

requirement will apply. This includes properties converted

from rental projects.

Valid presales include an executed sales agreement and evidence

that a lender is willing to make the loan. A mortgagee may

certify that this requirement has been met.

B. Owner-occupancy Requirements for Project Approval. At least 51

percent of the units of a project must be occupied by the

owners or sold to owners who intend to occupy the units. Field

Offices have the option to increase the percentage to as high

as 70 percent depending upon the market conditions in the area.

If the owner-occupancy ratio includes presales, we require an

executed sales agreement, evidence that a lender is willing to

make the loan and the buyer intends to occupy the unit. A

mortgagee may certify that this requirement has been met.

Note: Both the owner-occupancy and presale requirements may

be certified at the time the case is submitted for

endorsement. Individual applicants may be processed

through firm commitment or borrower approval by a

Direct Endorsement underwriter; however, no mortgage

will be insured until these requirements have been

satisfied.

(11-3) C. Owner-occupancy Requirements for HUD/FHA-insured Mortgages.

Once a project is approved, at least 80 percent of the units on

which there are HUD insured mortgages must be owner occupied.

D. Conversions from Rental Housing to Condominiums. Units in any

project converted from rental housing to condominium ownership

are not eligible for insurance and HUD will not process the

project unless:

1) The conversion occurred more than one year before the

application for mortgagor approval; or

2) The mortgagor or comortgagor was a tenant of that rental

project; or

3) The conversion of the property is sponsored by a bona fide

tenants organization representing a majority of the

households.

The project must also meet all other requirements for approval.

E. Condominium Document Approval. An attorney must certify that

all condominium legal documents meet HUD guidelines,(HUD

Handbook 4265.1, Appendix 24) and state and local condominium

laws. Approval of documents as evidenced by VA letter FL 26-619

or FNMA form 1028 may be accepted in lieu of an attorney's

certification. In all cases, a copy of the documents must be

obtained for the Field Office file.

F. Completion of Construction. Since HUD is insuring a mortgage on

a unit and an undivided interest in the common elements, the

entire condominium project, including the common facilities,

should be complete before any mortgage is insured.

If, however, the project is being constructed in legal phases,

mortgages may be insured on a phase by phase basis provided:

1) The developer submits a development plan which shows the

total number of units and all planned community

facilities;

2) There is reasonable expectation that the developer will

complete the project as planned.

3) Community facilities (for the project) are completed

or escrowed at 150 percent before insuring mortgages in the

initial phase;

(11-3) 4) In projects where the community facilities are substantial,

the developer will pay a proportional share of cost related

to the community facilities based on the percentage

attributable to each "unit/space" which has not been

conveyed to a condominium owner; and

5) Each phase meets the presale and owner-occupancy

requirements.

G. Manufactured housing as defined in 24 CFR 203.43(f) is not

eligible for mortgages insured under Section 234.

H. Recertification of Approvals. Approvals of condominium projects

should be recertified periodically to determine that the project

is still in compliance with HUD's owner-occupancy requirement

and that no conditions currently exist which would present an

unacceptable risk to the insurance fund.

It is not necessary for the HUD Field Office to automatically

review all projects on its approved list. However, when an

application for mortgage insurance is received for a project

which was approved or recertified more than two years ago, or if

the HUD office becomes aware of any adverse conditions, the

project should be evaluated. Based upon the individual

circumstances, if serious problems exist, the approval could be

withdrawn.

4150.1 REV-1

$8,000 Home Buyer Tax Credit at a Glance

• The tax credit is for first-time home buyers only.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

AARP’s Mission Statement

"AARP’s mission is to enhance the quality of life for all as we age, leading positive social change and delivering value to members through information, advocacy and service”. AARP has long been a source for seniors to go and get valuable and quality information on everything from leisure and health to consumer finance. AARP has compiled some very good information regarding reverse mortgages here.

http://www.aarp.org/money/personal/reverse_mortgages/

Reverse mortgages have been skyrocketing lately and are a very valuable tool for some seniors, that is why we at Anchor Lending Group have decided to provide Government Secured Reverse Mortgages. Reverse mortgages like any financial decision will require additional counseling with an industry expert.

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