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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 become HUD and FHA approved before your condominium community can offer FHA loans to your buyers. When your complex qualifies you must be re-certified every 24 months.
In case your condo community is not HUD/FHA approved you are passing up on lots of buyers.
For those who can't be eligible for a conventional loans the FHA loan program is the answer.
Based on DQ News in April 2011 - 33.4% of the purchase mortgages used 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 purchased a home with FHA-insured loans.
In case your condominium community isn't FHA approved you are missing out on lots of potential buyers. This can also affect current homeowners when they visit sell their unit.
For many first time house buyers qualifying for a conventional loan isn't possible. With the FHA you will find programs that make it feasible for these folks to get affordable financing.
The Benefits of the FHA Loan Program
- A minimal deposit
The FHA program lets buyers put less than 3.5% from the cost down. Understandably this opens many doors for people that wouldn't well be able to think of a conventional down payment.
- Help with closing costs
Qualified applicants may also receive up to 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. Why is this program different is when the home-buyers don't have enough credit to qualify by themselves a blood relative can co-sign while not having to live in the home that's being purchased.
With the aid of those benefits individuals with little credit, low and moderate incomes and first time house buyers have more opportunities to find affordable housing.
These kinds of people constitute a large part of these buying homes. First time home buyers are usually the ones that are less qualified for conventional loans. Without having to be 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:
- Elimination of spot approvals
- Mandatory re-certification for projects approved prior to October 2009
- Re-certification every 2 years
The elimination of spot approval can cause major concern and trouble for your condominium community. Spot approvals gave every condo community a method to assist people requiring FHA programs. Loans were selected an when needed basis.
Should you be counting on spot approvals to acquire financing for all those homebuyers that need FHA assistance that choice is no more available. You won't be capable of getting FHA help to buy a home in your community.
Now full HUD approval is needed for anyone wanting to use the FHA loan program.
In case your condominiums need to be certified or re-certified now is the time to get it done. It's anticipated there is a boatload of applications to HUD for FHA approval over the next couple of months consider getting yours in now. First come - first served.
