FHA loans may be closed soon after the review of necessary documents, even soon after the appraisal and title have been examined. These loans can be closed in as little as a few days, or take up to a month or so to complete. The lengthy completion may be due to the numerous processes and amount of documentation required. For a more accurate estimate, ask your loan officer, and check the transaction’s legal documents as well.
Some of the regulations and time frames vary from location to location. If you wish to purchase town homes or condominiums in Orlando, make sure that the home you wish to purchase is within a development that is FHA-approved. The condo unit or town home you wish to buy may not be included in the FHA-approved listings by the first of October. In this case, a spot approval is necessary so you can close your FHA mortgage in Orlando.
However, if the condo property is not in the FHA list for approved properties, it does not mean that you cannot purchase it. An Orlando FHA property loan is still a viable option you may just need the unit spot-approved. Check the information from the condominium HOA, or Home Owner’s Association.
Look at the ownership ratio of the condo neighborhood – this is one of the most important aspects to study if you want to utilize FHA mortgaging. More than half of the units in such a community need to be occupied before you can get FHA approval. The association must also have financial resources in tow, and have no involvement in any litigation proceedings. These considerations, however, will undergo drastic change once the spot approval process for Orlando FHA mortgages is overhauled on October 1 of 2009.
This new procedure entails that condominium projects may be approved by FHA lenders for HUD (Housing and Urban Development). Due to this, spot approvals will no longer be needed. When a loan is finished for a property currently in development, this will be appended to the approved listings, resulting in easier progress for future loans associated with the project. Theoretically, the time frames for FHA loans in the Orlando area will shorten.