FHA Condo Approvals – Site Condos Question
Yesterday, I received a call from an appraiser in Tempe, AZ, asking about site condos. He was working on an appraisal for a condominium and had a question as to whether or not it was a site condo. In doing research, he ran across my blog article so he called me.
According to the appraiser, none of the units are attached and each unit has an attached garage. This, by definition, would make them appear to be site condos.
However, the declaration states that the maintenance for the stucco siding and the tile roofs are the responsibility of the Association and not the unit owner.
Per HUD, in order for a condominium project to be classified as a site condo, the unit owner is responsible for all maintenance of the unit, including the garage and all attachments. This includes the siding and roofs of the units. HUD has also clarified this as to include any attached decks and even the front or rear steps of the units.
Therefore, this project would not be classified as a site condominium and would be required to get approved with HUD before being eligible for FHA financing.
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