Condo's must be on the FHA approval list to use FHA financing on the purchase of a home

By
Real Estate Agent with Golden Gate Sotheby's International 01427070

Condo's must be on the FHA approval list to use FHA financing on the purchase of a home

purchasing a condo with FHA financingIf 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.

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Elisa- Realtor 510-919-5741

Elisa Uribe    Realtor #0142707

Opening the Door to Opportunity

e.uribe@ggsir.com

Office :510-919-5741   Fax: 866-230-9144

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Rainer
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Brian West
imortgage - Gilbert, AZ
Arizona Lender

Good post about what it takes to finance condos that ren't yet approved. I can't help but wonder who paid for the approvals for those two deals, did Chase? They aren't cheap by any means which is why so many remain off of the approved list.

Thanks for the post!

Jan 31, 2011 10:22 AM #1
Rainmaker
392,808
Elisa Uribe Realtor #01427070
Golden Gate Sotheby's International - Oakland, CA
Opening the Doors to California Homes -East Bay

I believe the HOA paid for it.This was a response from another lender at RPM about the article I forwarded to him in an email.

Actually, RPM has worked with HUD to get several projects approved. The list of required documents is long, and the task is daunting, but it is doable as long as the condo complex meets the numerous requirements of HUD. It normally takes 4-8 weeks to get a project approved. There can be no issues with the complex or it will be denied. Most of the denials are a result of issues with delinquent homeowner dues or insufficient HOA reserves. Thanks, again. Tom Tom Roberts Branch Manager RPM | MORTGAGE 1451 Leimert Blvd. Oakland, CA 94602 Phone: 510.531.7005 Fax: 510.530.1070 License # 01176170

Jan 31, 2011 10:39 AM #2
Rainer
62,928
Brian West
imortgage - Gilbert, AZ
Arizona Lender

That's great that they came through for those deals! I've had my doubts about how many deals would go through because of the process and expense... but I s'pose where there's a will, there's a way!

Thanks for the reply and the post!

Jan 31, 2011 02:44 PM #3
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Rainmaker
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Elisa Uribe Realtor #01427070

Opening the Doors to California Homes -East Bay
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