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FHA Condominium Approvals
Presently it is easier to do am FHA Loan on a Condo than on a Fannie Mae or Freddie Mac (Conventional Loan), because of downpayment requirements and Condo Project Reviews.  Early last year Fannie Mae and Freddie Mac announced that they would no longer be keeping a list of approved condo's, and that it would be up to each individual Lender to develope their own list.   This means that each Lender has to not only do a Full Condo Review the first time they do a loan on a Condo Complex, but they aslo have to have all of the Condo Doc's reviewed by an Attorney.  This involves getting a copy of the Condo Packet, along with Insurance and current Budget, this increases the time and cost of approving a loan the first time on a condo complex. Minimum downpayment on Condo's can also be higher than on houses, depending on Private Mortgage Insurance Companies (PMI) requirement.  Many refuse to insure Condo's up to 95% LTV.
FHA however, has maintained the same process that they have had for years. If a condo is on the FHA Approved Condo List, then all that is required is a Limited Condo Review, which ... more

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