fha condominium approval: More Financing Options for Non-Warrantable Condominiums
- 02/02/14 01:01 AM
More Financing Options for Non-Warrantable Condominiums This is a follow up to my article from yesterday Financing Non-Warrantable Condominiums. Today's article will focus on the tougher-to-finance units. When a condominium project cannot meet FHA’s, Fannie Mae’s, Freddie Mac’s for the VA’s guidelines, financing because extremely difficult. These units are referred to as “non-warrantable” and many different facets of a condominium project can lead to this determination. If none of the options from yesterday were able to create a solution to the financing issues, options become very limited but they do exist. Check with Local Banks Because local banks are regionalized and shareholders … (2 comments)
fha condominium approval: FAQ’s For FHA Condo Approvals
- 01/10/14 03:49 AM
FAQ’s For FHA Condo Approvals There are definitely certain questions that I field on a routine basis, enough to be called FAQ’s for FHA Condo Approvals. Often, these questions are not asked of me directly but, rather, folks will speak misconceptions so I will stop and educate them. 1. I was told that I may be able to get a “spot loan”. What is that? FHA used to allow mortgage financing on individual units without requiring that the entire project become approved with FHA. These were called “spot loans”. In 2009, FHA decided to eliminate the spot loan program; this took … (3 comments)
fha condominium approval: Candlewood Village Condos in Enfield CT - Approved with FHA
- 01/09/14 04:13 AM
Candlewood Village Condos in Enfield, CT - Approved with FHA This morning, we received notice from FHA that Candlewood Village Condominiums in Enfield, CT, is now on the FHA Approved Condominiums List. FHA and CHFA financing options are now available for purchasing or refinancing the units in this condominium project.
Candlewood Village is a 112-unit condominium project located in a residential district off of Shaker Road roughly 1.5 miles to the East of Asnuntuck Community College. It is a quick 5-minute drive to the shopping centers in Enfield or to I-91, 25 minutes to Hartford and 15 minutes to Springfield, … (3 comments)
fha condominium approval: My Condo’s FHA Approval Expired – Can I Still Close?
- 09/18/13 08:27 PM
My Condo’s FHA Approval Expired – Can I Still Close? Yesterday, FHA held a webinar on the Condominium Project Approval Process. There were nearly 250 people on the call and judging by the questions asked many of the participants were from lenders. As a Project Consultant, I do not typically get involved with the “loan level” side of things. That is, once I get the project approved with FHA, I have nothing to do with helping a borrower obtain a loan in the project. One question that was posed was “if I have an FHA case number and the project’s approval … (32 comments)
fha condominium approval: Can You Help to Get a 2-Unit Condominium Approved with HUD?
- 09/03/13 02:07 AM
Can You Help to Get a 2-Unit Condominium Approved with HUD? Driving through a torrential downpour today, I fielded a phone call asking me if I could help to get a 2-unit condominium approved with HUD. Don’t worry, I was using my Bluetooth. The call came from, Mike, a branch manager for a mortgage office in Madison, WI. He shared his predicament where his client was attempting to use an FHA Reverse Mortgage to buy a unit in a 2-unit condominium project. The loan is not possible at this point because the project is not approved with HUD. He was referred … (2 comments)
I receive many email inquiries that are generated from my ActiveRain articles. I have been fortunate that there has been interest in some of my recent posts which has increased the number of email that I receive. …Which gives me topics for more articles! This is an email that I received this week from a real estate agent who has had financing fall through on a townhome. The lender cited that the reason for the denial was because the subject property was in a PUD. From the very limited information, I … (5 comments)
fha condominium approval: New Condominium Law in Florida
- 08/02/13 02:01 AM
New Condominium Law in Florida Joseph Adams of Becker and Poliakoff in Florida posted this detailed article of the new condominium laws that recently took effect. None of these should have any bearing on their ability to get approved with HUD/FHA. The only one that overlaps a little is the changes to the Fidelity coverage. To me the language is kind of vague and says that coverage must be purchased in an amount sufficient to cover the maximum funds that will be in the custody of the association or its management agent at any one time. I can see where … (3 comments)
Working with condominium projects, probably the most common item that needs to be addressed prior to submission is the coverage of the Employee Dishonesty/Fidelity Insurance. For all new and existing projects of 20 or more units, the HOA (not the property management company) must provide a policy that covers employee theft. If there is a property manager, the policy must include coverage of the management company. In reviewing the certificate of insurance, I look for two main things: 1. Is the coverage sufficient? 2. Does it specifically name the property management company? The … (16 comments)
In working with HUD over the years, I have noticed quite a range of strictness among the project reviewers. In fact, there is one project reviewer in a Homeownership Center (HOC) with whom I hope my files are not placed! Different reviewers have different interpretations of HUD’s guidelines. Some of the requirements for project approval are inherently subjective, such as the financial viability. It doesn’t say that if a project has so much in reserves and posts a certain profit that it is viable. It also doesn’t say that if the HOA … (23 comments)
Having lived most of my life in the northeast, I have had little experience traveling to the southwest. I did once drive from Florida to Los Angeles which is not something that I would like to do again in the near future. Nestled in the eastern section of the small city of Las Cruces, NM, is a new condominium development called Del Prado Condominium Owner’s Association, Inc. I recently helped them to obtain their approval with HUD and we are working on annexing in the units that most-recently received their certificates of occupancy. … (2 comments)
fha condominium approval: What is the Difference Between Legal Phasing and Marketing Phasing?
- 07/25/13 09:54 AM
What is the Difference Between Legal Phasing and Marketing Phasing? I received an inquiry from a mortgage broker in Arkansas asking what the difference is between legal phasing and marketing phasing as it pertain to Fannie Mae condominium project approvals. I thought this to be an appropriate blog article here because it pertains to Fannie, FHA and VA condominium approvals. All three of them have the same viewpoint in this matter. Legal Phasing must be specified in the legal documents that are recorded on the land records. It is not imperative to spell out how many units will be completed in … (1 comments)
More Financing Options for Non-Warrantable Condominiums
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