FHA Condo Recertifications - How Long Does it Take?
I had written one article with all of the FAQ's for FHA Condo Recertifications but it was nearly 900 words long! So I broke it up into two separate articles that contain the most common questions I receive regarding FHA Recertifications.
How long does an FHA Condo Recertification take?
This is the million-dollar question and I cringe each time I say the answer “it depends”. Our average processing time is about 6 weeks but it really depends on how quickly we receive the documents from their sources. It also speeds up the process if we handled the initial approval because we have many of the documents already.
Documents such as the financial statements and the project questionnaire typically come from the property manager. If the property manager is busy or the recertification is not a priority, it can take a couple of weeks to receive these documents. Also, if there is a pending special assessment, pending litigation or an outstanding loan, additional paperwork will be needed, which can cause delays.
FHA says to allow it up to 30 days to review files once they are “logged” into their system (this is when they are placed with a project reviewer.) It usually takes a couple of days for FHA to log a package once it is received. Processing times vary by Homeownership Center (HOC) and by the volume of incoming files. I have seen it take anywhere from 2 days to the full 30 days. Rarely has it gone past 30 days.
If the project is rejected by FHA, we have the ability to provide additional information/documentation as part of a reconsideration package. Once this is submitted, it can take an additional 30 days as it is placed back in queue. Typically, though, the reviewer will get to it within a week or two to get the file off of his/her desk.
If it is rejected again, then we can submit more paperwork and the process repeats until it is approved. About half of our submissions are approved on the first attempt and only a handful has required more than 1 reconsideration package.
For how long is an FHA Condo Recertification good?
FHA condominium project approvals are good for two years, whether it be the initial approval or a recertification.
What is the cost for an FHA Condo Recertification?
I have seen consultants charge $1000 to $3000 for this service. Our basic service fee is $995 for recertifications. This includes the cost to collect and review the documents. If we find issues or errors, we address those prior to submission, which saves a lot of time and aggravation.
We also offer a la carte add-on services where we can obtain copies of the recorded legal documents, read the legal documents for potential issues and consult in the creation of a budget that is acceptable to FHA.
FHA doesn’t charge to review and approve submission packages.
Please contact me if you have any questions regarding FHA Condominium Project Recertifications.
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