Home Buying in 33324>Question Details

Valery, Home Buyer in Boca Raton, FL

FHA FULL CONDO APPROVAL

Asked by Valery, Boca Raton, FL Thu Sep 4, 2008

I am a first time home buyer doing FHA with a financial institution. The loan processor told me that I was supposed to close on August 29, 2008 and everything was approved and good to go. Unfortunately, on the day before the loan processor called me to say that the community needs full condo approval for FHA and that will take up to 8 weeks. I really felt cheated and frustrated because I think they should have told me that right after I gave them the sales contract before I spent all that money on Appraisal, Inspection, Screening, Condo Questionnaire, closing a CD before maturity date etc.... I would like to know if there is no other way I can do this approval faster or can I ask t he bank to refund me the money if I withdraw from the transaction?

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Answers

5
Few to no condos are FHA approved now. Associations are not submitting documentation to be renewed and HUD has little interest in making condo financing more affordable. Condo financing is 20% down at best, or 25% for what is called a limited review.

Most often, HOAs fall short on reserves. FHA requires 10% of the annual revenue to be allocated towards a separate reserve account.

HUD publishes FHA approved condos by zip code. Contact me and I will give you the link.

Good luck.
0 votes Thank Flag Link Wed May 22, 2013
Hello Valery,
I fell sorry for you situation, your realtor must let you know in advance. Be patient. You can not get approval faster. You have two choices:
- wait for the approval
- walk away from the deal (in this case no refund will be issued)
0 votes Thank Flag Link Thu Feb 17, 2011
I have been a real estate broker in south Florida for 25 years, and your real estate agent should have realized this condo was not FHA approved. Furthermore, the mortgage broker or lender should have known right from the beginning when he/she took the application that it was not FHA approved. At that point you should have been made aware of the situation, and then you would not have had the expense of an appraisal, inspections, condo application fee, etc. One or more people here were negligent.

With all that said, it just seems impossible to go right up to the day before closing to find out that you can't close, because the complex is not FHA approved. Either the mortgage broker or processor for the lender was brand new or is just totally incompetent. Good luck on trying to get the complex approved, because many complexes do not even want the approval, and they refuse to fill out the paperwork.
0 votes Thank Flag Link Wed Oct 29, 2008
Valery,

I'm sorry to say this but even after 8 weeks your condo will probably not get approval. Best advice is buy in a approved building or put down 20%.

Phillip.Moody@PrudentialNetworkRealty.com
0 votes Thank Flag Link Thu Sep 4, 2008
Dear Valery,

HUD lists condo buildings that are approved on their website and your agent should have been aware of that. You may want to contact HUD directly and ask them if there is anything that can be done.

Good luck
0 votes Thank Flag Link Thu Sep 4, 2008
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