Cheryl Knowlton:
Hi everybody. Cheryl Knowlton, CEO of Dynamite Productions here with my favorite sidekick, Clay Johnson-
Clay Johnson:
Hi there.
Cheryl Knowlton:
… Castle and Cooke mortgage. Okay, so fresh hot off the press. Today, we’re going to be talking about all of the new FHA condo guidelines.
Clay Johnson:
It’s been kind of interesting because you’ve always had to have condo approval for the whole condominium complex and it as we renewed every two years. Well, interestingly enough, in the last several years we’ve seen this pattern where folks aren’t renewing that FHA condo approval and sometimes it’s even listed as FHA approved for FHA financing and then it’s not.
Cheryl Knowlton:
And that’s a huge problem.
Clay Johnson:
It’s a huge problem. They get into the process and then they realize, oh, we can’t go FHA on this because of the property and it doesn’t have FHA approval. The neat thing about like Fannie Mae and conventional Freddie Mac, they’ve been able to do spot approvals on properties.
Cheryl Knowlton:
And they were easier than doing it.
Clay Johnson:
Easier. We still do those. We just did one this last week. It was a borderline property, but we did get the spot approval for Fannie Mae on that property and the great thing about it is the FHA has now come out with an announcement and they are going to start doing a similar process where even if the whole complex isn’t FHA approved, they can look at that HOA certification, the guidelines and say, “Yeah, you know what? We’re okay with this.” And it’s going to be much less stringent and restrictive as it is for the whole-
Cheryl Knowlton:
Thank heaven.
Clay Johnson:
I know.
Cheryl Knowlton:
I used to tell people when I was on the wholesale side of lending and just doing FHA and VA, lie down until the urge to do a spot approval goes away because it’s going to be miserable. So hooray that it’s not going to be miserable.
Clay Johnson:
It’s not going to be too bad. I think you know for us we can do it in the house pretty quickly. I know our underwriters are getting up to speed on that right now, which is-
Cheryl Knowlton:
Well, it’s brand new.
Clay Johnson:
It’s a brand, brand new.
Cheryl Knowlton:
It’s a huge change.
Clay Johnson:
It is and so we’re excited about that announcement so we’ll be getting some more details. If you ever need more information, check us out. We’d love to talk to you more. Put a comment below and we will be sure to get back with you.
Cheryl Knowlton:
And we’ll see you next time.
Clay Johnson:
Bye. Bye.