Is YOUR CONDO FHA CERTIFIED? IF NOT, WHO CAN PURCHASE IT?

By
Real Estate Agent with Long & Foster Real Estate, Inc. 608255

Is your condo FHA Certified? If not, who can purchase my condo?

 

coni otto sells real estate in laurel marylandIf you own a condo right now and you are trying to sell it and your condo is not FHA certified then you may have to hold on to it for a little bit longer unless you can find a cash or conventional buyer or until your condo association can get the FHA Certification… If you get the certification and but your neighbors are not paying their condo fees and there is a delinquency of 15% or more you still won’t be able to sell your condo because of the FHA guidelines for lending to FHA buyers.

coni otto sells real estate in columbia marylandYou can check the HUD website that will give you a list of the APPROVED FHA condo certified communities at https://entp.hud.gov/idapp/html/condlook.cfm

Just put in the state and the city and a list will come up for you to review.

coni otto sells real estate in washington, dcA buyer must consult their lender to make sure they can purchase a condo or understand the issue involved in the FHA guidelines.

Even if you purchase your home with a conventional loan your lender will let you know if an exception can be made to allow you to purchase the condo even if it has a high delinquency rate. The exception is based on a ratio of owners vs. investors in the community.

If you would like more information about condos and the problems the Associations are having you can google FHA certification problems and several websites will come up with articles like this one…

http://articles.latimes.com/2011/oct/23/business/la-fi-harney-20111023

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Comments (1)

Mary Hillerman
Crye-Leike Realtors® - Bentonville, AR

Hi Connie, I hope real estate is treating you well! Thanks for the information.

Mar 29, 2013 12:43 AM

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