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HUD/FHA Approval For Condominium Complexes
It is important for Your Condominium Community to become 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 have to be re-certified every 2 years.
If your condo community isn't HUD/FHA approved you are passing up on lots of buyers.
For those who can't qualify for conventional loans the FHA loan program may be the answer.
Based on DQ News in April 2011 - 33.4% of the purchase mortgages used in 20 from 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 very first time house buyers qualifying for a conventional loan isn't possible. Through the FHA you will find programs making it practical for these people to get affordable financing.
The Benefits of the FHA Loan Program
- A low deposit
The FHA program lets buyers put as little as 3.5% of the cost down. Understandably this opens many doors for people that wouldn't well be in a position to think of a conventional deposit.
- Assist with settlement costs
Qualified applicants may also receive as much as 6% towards closing costs. This reduces the loan and down payment amount.
- Co-Signer requirements
Another area of the program enables a blood relative to co-sign. What makes this program different is that if the home-buyers do not have sufficient credit to qualify by themselves a blood relative can co-sign without needing to live in the house that's being purchased.
With the aid of those benefits individuals with little credit, low and moderate incomes and first time home buyers have more possibilities to find affordable housing.
These types of people constitute a large part of those buying homes. Very first time house buyers are often those that are less qualified for conventional loans. Without having to be HUD approved your condo community will not be able to provide affordable financing from 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 just before 2009
- Re-certification every 24 months
The removal of spot approval can cause major concern and problems for your condominium community. Spot approvals gave every condo community a method to assist people requiring FHA programs. Loans were decided on an when needed basis.
Should you be relying on spot approvals to acquire financing for all those homebuyers that need FHA assistance that choice is no longer available. You will not be able to get FHA assistance to buy a home in your community.
Now full HUD approval is needed for anybody wanting to use the FHA loan program.
In case your condominiums have to be certified or re-certified this is the time to do it. It's anticipated that there will be a boatload of applications to HUD for FHA approval within the next couple of months consider getting yours in now. First come - first served.
