Longwood Gardens Flowers & FHA 203(k) Condo Financing 8/10/11
FHA 203(k) Financing For Condominiums - HUD Guidelines
The Department also permits Section 203(k) mortgages to be used for individual units in condominium projects that have been approved by FHA.
The 203(k) program was not intended to be a project mortgage insurance program, as large scale development has considerably more risk than individual single-family mortgage insurance. Therefore, condominium rehabilitation is subject to the following conditions:
|Owner/occupant and qualified non-profit borrowers only; no investors;|
|Rehabilitation is limited only to the interior of the unit. Mortgage proceeds are not to be used for the rehabilitation of exteriors or other areas which are the responsibility of the condominium association, except for the installation of firewalls in the attic for the unit;|
|Only the lesser of five units per condominium association, or 25 percent of the total number of units, can be undergoing rehabilitation at any one time;|
|The maximum mortgage amount cannot exceed 100 percent of after-improved value.|
After rehabilitation is complete, the individual buildings within the condominium must not contain more than four units. By law, Section 203(k) can only be used to rehabilitate units in one-to-four unit structures. However, this does not mean that the condominium project, as a whole, can only have four units or that all individual structures must be detached.
Example: A project might consist of six buildings each containing four units, for a total of 24 units in the project and, thus, be eligible for Section 203(k). Likewise, a project could contain a row of more than four attached townhouses and be eligible for Section 203(k) because HUD considers each townhouse as one structure, provided each unit is separated by a 1 1/2 hour firewall (from foundation up to the roof).
Similar to a project with a condominium unit with a mortgage insured under Section 234(c) of the National Housing Act, the condominium project must be approved by HUD prior to the closing of any individual mortgages on the condominium units.
Longwood Gardens - Dolores and I enjoy frequent visits to Longwood Gardens in Kennett Square, Pennsylvania. Encompassing more than 1,077 acres, Longwood Gardens is a place of unparalleled beauty, offering dazzling displays that elevate the artistry of horticulture as will as an array of innovative educational programs. You will enjoy the Gardens and the grand Conservatory. www.LongwoodGardens.org
Roy and Dolores Kelley visited Longwood Gardens on June 5, 2011. This is one of our favorite destinations. Canon PowerShot G11 camera. Photographs by Roy Kelley.