1.) FHA will permit spot loan approval until January 31, 2010.
2.) The number of allowable FHA loans in a particular building has been increased from what was going to be 30% to a higher limit of 50% with the possibility of 100% if it meets the following criteria:
- The building is 100% complete and construction has been completed for at least one year, as evidenced by issuance of the final or temporary/conditional certificate of occupancy for last unit conveyed;
- 100% of the units have been sold and no entity owns more than 10% of the units in the project;
- The project's budget provides for the funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 10% of the budget;
- Control of Homeowners Association has transferred to the owners; and
- The owner occupancy ratio is at least 50%.
Note: New construction and conversions are not eligible for this exception.
3.) At least 50% of the units in a project must be owner-occupied or sold to owners who intend to occupy the units. For proposed, under construction, or projects still in their initial marketing period, FHA will allow a minimum owner occupancy amount equal to 50% of the number of presold-units.
Vacant or tenant-occupied real estate owned (REOs), including properties that are bank owned may be excluded from the calculation of the required owner-occupancy percentage.
4.) Pre-sale requirements: In the case of new construction, the pre-sale requirement will be reduced temporarily to 30%. The pre-sale percentage must be documented as follows:
- Copies of the sales agreements and evidence that a mortgagee is willing to make the loan;
- Evidence that units have closed and are occupied; OR
- Information from a developer/builder that lists all of the units already sold, under contract, or closed that is accompanied by a signed certification from the developer.