FHA GUIDELINES FOR ASSOCIATIONS

I see a problem coming on the horizon and I don't have to be a clairvoyant to know that it's going to be bad.  In fact, I've started to see little bits and pieces of the problem over the last 6 months or so.  Some problems were created a long time ago, others created more recently.  Did you know that what your Association decides with your FHA approval and required submission can impact the sale of your home?  

Most sellers don't know this has a HUGE IMPACT.

With all the new lending guidelines and restrictions just laid out this year, more and more people will be using FHA financing.  It is normally more lenient with credit dings and dents. No major crashes or penalties, but a few minor bumps in the road.  Also, you only need a small down payment of 3.5%.  

What if your condo management decided not to renew their FHA approval to save a few dollars?

What if your condo management just said 'Nawww, we don't need no stinkin' FHA! That's for losers isn't it?'  Well, no it's not.  You being a homeowner in that complex is going to make you the big looser.  Here's how!

If 60% of people looking for homes are going FHA financing and your complex isn't approved that means that 60% of the buyers won't see your house!  Got that?

So that leaves conventional financing and cash - good luck with that cash buyer, not many of those hanging around in the bushes these days!  You've got a better chance of winning the lotto, getting a hole in one or getting struck by lightning than someone buying your home with cash!

So while I'm at it, let's talk about other association blunders that I've recently come across:  

• Owners suing the association - will make the complex loose their FHA standing.
• Tax liens against the association or common property will make the complex loose their FHA standing.
• Not enough owner occupants in the association creating a huge renter vs. owner mix within the complex.  Yep, you'll loose your FHA standing.
• Too many people not paying their assessments  - due to foreclosures or just bad collection practices by the association.  See ya ..... FHA approval.

This is just another reason to get involved and stay involved with your association. Keeping and eye on your investment (your home) shouldn't be looked at as a problem or a hassle.  Just like you lock your car and protect your valuables, attend a homeowners meeting to see what's going on with your budget and management.

FHA APPROVAL LIST BY STATE