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FHA Rule Change

By November 10, 2011

HOA

A few weeks ago, the Seattle Times published an article on headaches. Oh, actually it was about what might be causing those headaches for condo buyers and sellers: recent FHA rule changes.

Is a little-publicized switch in federal mortgage policy causing huge problems for condominium sellers, buyers and homeowner-association boards across the country — even depressing prices and blocking refinancings?

The article goes on to explain:

Out of approximately 25,000 condo projects nationwide with expiration dates for FHA eligibility between last December and Sept. 30 of this year, only 2,100 — just 8.4 percent — have been approved or recertified by the agency, according to Lemar Wooley, an agency spokesman.

It then describes the challenges the new rules may present in gaining approval and how lack of FHA approval can impact condo buyers, sellers, or owner’s attempts to refinance. However, as is often the case when I read a nationwide article — it is not altogether clear how this might be impacting Seattle specifically.

Anyone have any insight on whether there are an increasing number of condos that are no longer FHA approved in Seattle (with no plans to renew) and/or whether condo buyers, sellers, or owners aspiring to refinance are challenged by this state of affairs?