Condos Puds
• Some lenders now require a condominium borrower to obtain a “Walls In” coverage policy (commonly known as
an HO-6 policy). Coverage is to include interior walls, floor coverings, fixtures, cabinetry, appliances,
and improvements and betterments made to the unit’s interior. The HO-6 policy must provide coverage
is an amount that is no less 20% of the condominium unit’s appraised value.
Eligible
• Condos must be FHA-approved or meet FHA guidelines for “Spot Approval.” Spot Approvals on
exception, case by case and may be subject to a pricing adjustment.
• Spot Approval allowed for case dates issued must be submitted and /or locked by September 30, 2009.
Ineligible
• Multiple unit condos.
• Leasehold condos not allowed.
