The FHA requires condominium complexes to be FHA approved before individuals can use FHA-insured loans for purchases, refinancing, or reverse mortgages. The advantage of FHA approval is an increased pool of buyers, and the ability for unit owners to refinance using FHA-insured loans. Over 80% of first-time home-buyers state they are using FHA-insured loans. Having a larger pool of buyers can stabilize or improve property valuations. Condominiums that are not FHA approved tend to have a higher percentage of investor purchasers.
In order for a condominium to be FHA approved or re-certified, certain eligibility requirements must be met. For example, the FHA requires an owner-occupancy ratio of at least 50% and delinquency rates below 15%. There are additional submission requirements including legal, financial and insurance documents, as well as the completion of an FHA Questionnaire.
If your condominium association is interested in becoming FHA approved and would like assistance in the preparation of a submission package, American Community Management (ACM) recommends Condo Approvals, LLC, a member of the Chesapeake Chapter Community Associations Institute (CAI). Condo Approvals has been a proven partner with ACM and its community associations providing a low-cost, high-quality service to condominiums involved in the approval process.
"Since our original request with FHA came back with a denial, it was appreciated to be able to contract with a company that could resubmit the needed paperwork in a thorough manner for follow up seeking the approval we were looking for due to our already hectic work schedule," says Ron Rims, Community Association Manager for Garrision Ridge Condominium, represented by ACM, about working with Condo Approvals, LLC.
You can contact Gary Gooch at 571-312-0925, by email at firstname.lastname@example.org for a free pre-screen of your association.
Article written by: Gary Gooch