Condo's must be on the FHA approval list to use FHA financing on the purchase of a home
If you are a buyer looking to purchase in a condo, and are approved for FHA financing due to rules implemented in February 2010, the condominium, or even a townhome, must have FHA approval for you to get approval on the loan. This also applies to refinancing of a loan too.
In the past, if the building was not approved, they lender could ask for "spot approval." I'm sure you have heard it's a great time to buy because prices are low. Well, it's a great time to buy before lending requirement continue to start to tighten too.
As of January 2001 condominiums and townhomes must now meet the eligibility requirement at the time of underwriting for an FHA loan.
If a condo is not on the list and you want them to be, let your Realtor know and suggest they visit this website where they can find out more about the process and receive a condominium certification at a discounted price. Hopefully in enough time for you as a buyer to purchase the unit of your choice.
Realtors, lenders and homeowner can research and find out what condo's and townhome associations are on the list by going here.
For best results while searching, I would suggest using the city and state field only.
After sending this information to my network of professionals, I heard from a lender at Chase and she said:
"I have actually successfully completed two recently. It’s about a 30day process to obtain FHA delrap approval. The challenge is that the project must be approved BEFORE you can obtain FHA case number which means appraisal and processing is on hold until complete. I managed to close two deals; one in 45 days the other in 60 start to finish. It’s not easy BUT IT CAN be done! - Michelle Elliott
For more information you can email Michelle at Michelle.d.elliott@chase.com, or you can contact me.
Comments(3)