Date: July 19, 2000
To: VHDA Originating Lenders
From: Janice Burgess
Re: FHA Financed Condominium Units
In accordance with the suspension of FHA insurance of loans financing condominium units as reflected in the attached Mortgagee Letter 00-23, VHDA will not fund nor allow any FHA condominium loan to close after July 26, 2000. In addition, VHDA will not accept new reservations or issue commitments for FHA loans for the purpose of financing condominium units until such time as this suspension has been rescinded.
VHDA lenders are expected to submit to FHA for endorsement on all condominium loans within the specified time frame required by FHA in the attached mortgagee letter. Loans not submitted within this time period and not receiving endorsement may be subject to purchase from VHDA by the originating lender.
For loans not closed prior to the July 26th deadline, VHDA will allow qualified applicants to transfer their existing loan reservation ,at not additional costs, to other VHDA programs eligible for condominium financing according to program guidelines.
Questions regarding this notice as related to VHDA loans may be directed to the Single Family Originations Department.