HassPeabody94
HUD/FHA Approval For Condominium Complexes
It is important for Your Condominium Community to Be HUD/FHA Approved
The Feds changed the game.
You now need to become HUD and FHA approved before your condominium community can offer FHA loans for your buyers. Once your complex is approved you have to be re-certified every 2 years.
In case your condo community is not HUD/FHA approved you're passing up on a lot of buyers.
For people who can't qualify for conventional loans the FHA loan program may be the answer.
According to DQ News in April 2011 - 33.4% of the purchase mortgages utilized in 20 from the largest metro areas were FHA-Insured and the November 2010 Realtors® Confidence Index reported that Nationally 39 percent of latest buyers obtained a home with FHA-insured loans.
In case your condominium community is not FHA approved you're passing up on lots of potential buyers. This can also affect current homeowners once they visit sell their unit.
For a lot of first time house buyers qualifying for any conventional loan isn't possible. With the FHA you will find programs making it practical for these folks to get affordable financing.
The Benefits of the FHA Loan Program
- A minimal down payment
The FHA program lets buyers put less than 3.5% of the cost down. As you can imagine this opens many doors for people that wouldn't well be in a position to think of a conventional deposit.
- Assist with closing costs
Qualified applicants can also receive up to 6% towards settlement costs. This further cuts down on the loan and down payment amount.
- Co-Signer requirements
Another part of the program enables a blood relative to co-sign. Why is the program different is when the home-buyers don't have enough credit to qualify by themselves a blood relative can co-sign without needing to reside in the home that is being purchased.
With the aid of those benefits people with little credit, low and moderate incomes and very first time house buyers have more possibilities to find affordable housing.
These types of people make up most of those buying homes. First time home buyers are usually 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:
- Elimination of spot approvals
- Mandatory re-certification for projects approved prior to October 2009
- Re-certification every 2 years
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 selected an as needed basis.
If you were counting on spot approvals to obtain financing for those homebuyers that require FHA assistance that choice is no more available. You won't be able to get FHA assistance to purchase a home in your community.
Now full HUD approval is required for anybody attempting to make use of the FHA loan program.
In case your condominiums need to be certified or re-certified this is the time to do it. It is anticipated that there is a boatload of applications to HUD for FHA approval within the next couple of months so get yours in now. First come - first served.
