For me, the elimination of the spot approval is a problem. A current client is trying to write a contract this week to capitialize on the 8K home credit. The unit they like is in a small building (8 units) and it's not FHA approved. If spot approvals are gone, so are our chances on making an offer and using an FHA loan.
I've heard a rumor that spot approvals will be allowed until Dec. 7th. My sources at First Financial Services, Inc. (FFSi) say otherwise. I'm in a holding pattern until somebody finds out what's really happening. The joys of lending '09 part 2.
On a positive note, my 3rd short sale of the year FINALLY closed on Friday. It was a month late, but it closed. I'm relieved and elated for my client!
UPDATE: 11/2- FHA spot approvals good until 12/7/09. If you're using FHA, hurry, hurry, hurry! Getting a building FHA approved is a process. Getting into a building that's already FHA approved is a challenge too. Good luck!