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HUD/FHA Approval For Condominium Complexes

It's Important for Your Condominium Community to Be HUD/FHA Approved

The Feds changed the game.

The next step is to be HUD and FHA approved before your condominium community can provide FHA loans to your buyers. Once your complex qualifies you must be re-certified every 2 years.

In case your condo community isn't HUD/FHA approved you're passing up on lots of buyers.

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

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

If your condominium community is not FHA approved you are passing up on a lot of potential customers. This will also affect current homeowners when they visit sell their unit.

For many very first time home buyers qualifying for any conventional loan isn't possible. With the FHA there are programs making it feasible for these people to get affordable financing.

The advantages of the FHA Loan Program

- A low down payment

The FHA program lets buyers put less than 3.5% of the cost down. Understandably this opens many doors for individuals that wouldn't otherwise be able to think of a conventional down payment.

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- Assist with closing costs

Qualified applicants can also receive up to 6% towards closing costs. This reduces the loan and down payment amount.

- Co-Signer requirements

Another part of the program enables a blood in accordance with co-sign. Why is this program different is when the home-buyers don't have enough credit to qualify on their own a blood relative can co-sign without needing to reside in the house that's being purchased.

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

These kinds of people constitute most of these buying homes. First time home buyers are often those that are less qualified for conventional loans. Without being HUD approved your condo community won't be able to provide affordable financing in the FHA.

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

HUD Changes:

- Removal of spot approvals

- Mandatory re-certification for projects approved prior to 2009

- Re-certification every 24 months

The elimination of spot approval can cause major concern and problems for your condominium community. Spot approvals gave every condo community a way to assist people requiring FHA programs. Loans were selected an as needed basis.

If you were relying on spot approvals to obtain financing for all those homebuyers that need FHA assistance that choice is no longer available. You won't be able to get FHA help to purchase a home in your community.

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

In case your condominiums need to be certified or re-certified now is the time to do it. It is anticipated there will be a boatload of applications to HUD for FHA approval within the next few months so get yours in now. First come - first served.