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Is that condo community certified for FHA financing?

By Roy Kelley

Industry Observer with Retired

February 10, 2014 07:51 AM

Is that condo community certified for FHA financing?

Home buyers and home sellers that have interests in condos should be very much concerned with FHA certification. If FHA certification is not available, the purchaser prospects may be restricted to those that will qualify for conventional financing with higher cash requirements than the FHA programs.

The decisions by condominium boards of directors may be compounded when they consider the prospects of discrimination claims. Take a close look at the article at this link.

Condo boards could face discrimination claims if they don’t at least consider FHA certification

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Noah Seidenberg

Coldwell Banker - Evanston, IL

Chicagoland and Suburbs (800) 858-7917

Hi Roy, I have read similar articles stating that one cannot discriminate from FHA and section 8 in this area of the countr. I think the HOA's of these condo buildings have to become FHA approved or will get a penalty?

Feb 10, 2014 08:09 AM

Rob Thomas

Prestige Homes of The Tri Cities, Inc. CALL....423-341-6954 - Bristol, TN

Bristol TN-VA & Tri Cities Agent, ABR, GRI, e-Pro

Roy ...this is so important! We have one here that is not ...and it makes it really tough to sell them.

Have a great night in MD!

Feb 10, 2014 08:16 AM

Cindy Edwards

RE/MAX Checkmate - Johnson City, TN

CRS, GRI, PMN - Northeast Tennessee 423-677-6677

Hi Roy,

It is amazing how many condominium projects are not FHA approved. It is something agents have to be aware of, and able to educate buyers.

Feb 10, 2014 08:33 AM

Roy Kelley

Retired - Gaithersburg, MD

Thank you very much for your comment. I hope you will blog about this important topic.

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Feb 10, 2014 08:38 AM

Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES

Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL

Florida Waterfront and Country Club Living

Roy, this is definitely important information for buyers, sellers, and agents to know before they start writing offers on a condo unit.

Feb 10, 2014 08:51 AM

Debbie Laity

Cedaredge Land Company - Cedaredge, CO

Your Real Estate Resource for Delta County, CO

We don't have condo developments in my area. I have heard about this, but it's never been an issue that has come up.

Feb 10, 2014 10:10 AM

Sharon Parisi

United Real Estate Dallas - Dallas, TX

Dallas Homes

The linked article is an interesting read. I had not thought about this aspect of FHA approvals. I share with buyers that a complex that is not FHA approved may have fewer potential buyers when they become future sellers. In my opinion, it is in the best interest of condo boards to pursue condo certification and maintain the certification.

Feb 10, 2014 10:27 AM

Lottie Kendall

Compass - San Francisco, CA

Helping make your real estate dreams a reality

One needs to check to be sure ALL phases/building in a condo project are approved by FHA. I got caught up in that a few years ago--the lender worked diligently to get the omitted bulding approved. He succeeded, but by then the buyer had walked.

Feb 10, 2014 11:15 AM

Kristin Hamilton CA REALTOR

Berkshire Hathaway California Realty - Beaumont, CA

(909) 557-6966- Specialize 55+ Communties Banning

Hi Roy,

An important subject and many Realtors do not know this. If the offer is accepted and the UW sees there is not any FHA approval for the complex, you have just wasted your time and all the parties. A good listing agent should put whether it will go FHA if they know. If they don't know, they should find out.

Feb 10, 2014 01:23 PM

Joe Petrowsky

Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT

Your Mortgage Consultant for Life

Good morning Roy. Having a complex FHA approved is certainly important, but keep in mind, an FHA transaction needs 3.5% down, but there is some conventional loans available with 5% down.

Feb 10, 2014 06:40 PM

Conrad Allen

Re/Max Professional Associates - Webster, MA

Webster, Ma, Realtor

Hi Roy. Depending upon the price range FHA certification is a must.

Feb 10, 2014 07:04 PM

Roy Kelley

Retired - Gaithersburg, MD

Your comments are very much appreciated. Real estate professionals need to know the status of FHA approval for a condo community before submitting a contract or taking a listing.

Think about spring. We are expecting another winter storm in Maryland.

Feb 10, 2014 07:50 PM

Wayne Martin

Wayne M Martin - Chicago, IL

Real Estate Broker - Retired

Roy, so many associations not approved here in Southwest Florida! Enjoy your day!

Feb 10, 2014 08:02 PM

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

This is a big issue here in FL, Roy. Though there is a procedure that may result in getting FHA financing on an unapproved association. It's not an easy process.

Feb 10, 2014 08:37 PM

Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400

The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY

Long Island Condo and Home Specialists

Not all on Long Island are approved FHA. Buyers need to ask their Agents before making an offer with this type of loan...

Feb 10, 2014 08:57 PM

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