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HUD/FHA Approval For Condominium Complexes

It's Important for the Condominium Community to become HUD/FHA Approved

The Feds changed the game.

The next step is to become HUD and FHA approved before your condominium community can offer FHA loans to your buyers. Once your complex is approved you must be re-certified every 24 months.

If your condo community isn't HUD/FHA approved you are passing up on a lot of buyers.

For those who can't be eligible for a conventional loans the FHA loan program is the answer.

According to DQ News in April 2011 - 33.4% from the purchase mortgages utilized in 20 of the largest metro areas were FHA-Insured and also the November 2010 Realtors® Confidence Index reported that Nationally 39 percent of latest buyers purchased a home with FHA-insured loans.

If your condominium community is not FHA approved you are missing out on lots of potential customers. This will also affect current homeowners when they visit sell their unit.

For a lot of first time house buyers qualifying for a conventional loan isn't possible. Through the FHA there are programs that make it feasible for these people to obtain affordable financing.

The Benefits of the FHA Loan Program

- A low down payment

The FHA program lets buyers put as little as 3.5% from the cost down. Understandably this opens many doors for people that wouldn't well be able to think of a conventional deposit.

fha condo approval

- Help with closing costs

Qualified applicants can also receive as much as 6% towards closing costs. This further cuts down on the loan and down payment amount.

- Co-Signer requirements

Another part of the program allows for a blood in accordance with co-sign. What makes this program different is when the home-buyers don't have enough credit to qualify on their own a blood relative can co-sign while not having to reside in the house that is being purchased.

With the aid of those benefits people with little credit, low and moderate incomes and first time home buyers convey more opportunities to find affordable housing.

These kinds of people make up a large part of these buying homes. First time home buyers are usually the ones that are less qualified for conventional loans. Without being HUD approved your condo community won't be able to provide affordable financing from the FHA.

Recently HUD made drastic changes to their condo approval program. These changes jeopardize the supply of FHA loans for condominiums.

HUD Changes:

- Removal of spot approvals

- Mandatory re-certification for projects approved just before October 2009

- Re-certification every 24 months

The elimination of spot approval may cause major concern and trouble for your condominium community. Spot approvals gave every condo community a way to assist people requiring FHA programs. Loans were decided on an when needed basis.

Should you be counting on spot approvals to obtain financing for all those homebuyers that need FHA assistance that option is no longer available. You will not be capable of getting FHA help to buy a home in your community.

Now full HUD approval is needed for anyone wanting to make use of the FHA loan program.

If your condominiums have to be certified or re-certified this is the time to do it. It's anticipated that there is a boatload of applications to HUD for FHA approval within the next couple of months consider getting yours in now. First come - first served.