Home Buying in Stoughton>Question Details

Drew, Other/Just Looking in Boston, MA

I want to buy a condo that is not FHA approved and know that most lenders wont do spot approvals anymore....

Asked by Drew, Boston, MA Thu Apr 1, 2010

what is the process like to get it approved and should I put an offer in before we get the approval? How long does it take, etc.

Help the community by answering this question:


Drew - You are correct that Spot Approvals are no more, but there are new processes in place to get Condos FHA approved. It is not that difficult of thing. Depending on where you go for financing, the Loan Officer should be able to get that done for you. I am with a FDIC Insured National Lender, and we have multiple options to get this done in as little as 2 weeks.
0 votes Thank Flag Link Tue Apr 6, 2010
The only good news for FHA buyers of condos is that some projects are approved....in other words, the entire building. Your lender can check with FHA and find out.

We hope that FHA comes to their senses and re-institutes spot approvals. This locks many buyers out of the market when we do not have them.

Good luck!
0 votes Thank Flag Link Fri Apr 2, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
I am a Stoughton Real Estate Broker and if you are not already working witha Realtor I can help you with finding the right lender and more thanl likley would know someone at the condo association that could provide direct assistance. Chris Layton 781-344-8300
0 votes Thank Flag Link Fri Apr 2, 2010
FHA will no longer do spot approvals, but that doesn't mean you can't get that condo. You must get the whole complex approved, which I can Possibly do for you. I must warn you, that process can take 30 - 60 days. How badly do you want this particular condo. You can contact me anytime for more information.
I would need to find out more information about the complex.
Take care and best of luck.
0 votes Thank Flag Link Thu Apr 1, 2010
I know a lender that does some work in Stoughton, you will want to contact a lender that may do a lot of work in the community and may be more likely to consider financing a property in the community.

Are you working with a real estate agent? He/She may have a contact with a local bank. Let me know if you'd like my help. I grew up in Canton, so I still know a few people in the area. You can either call me at (617) 308-683 or email me at greer.swiston@commonmoves.com

0 votes Thank Flag Link Thu Apr 1, 2010
FHA has really clamped down on condo approval. I don't believe they will do spot approvals anymore. The condo association has to take the time to do the FHA approval. I guess you could offer to pay for it. I've heard it's about $600-$800.

There are some things you can do to start off with to see if it is even possible to get FHA approval. 1) check how many units are owner occupied. If the owner occupancy rate is under 70%, it probably will not get FHA approval. Some banks are different, so you should check with the lender on the exact occupancy rate needed. 2) if there are a lot of rentals, check if 1 investor owns a significant portion of these. This could cause problems also. 3) check the condo fee delinquency rate. If this is high (over 15% or so), then that will also have problems with FHA.

If it passes all of this, then the big question (and the hardest to answer) is the percentage of loans FHA approved. FHA won't finance in a complex where there are already a lot of FHA loans. I believe this has to be done through some type of title search so it isn't cheap.

Hope this helps. Good luck!
Web Reference: http://www.sherriway.com
0 votes Thank Flag Link Thu Apr 1, 2010
Check with your lender on their requirements and time frames.
0 votes Thank Flag Link Thu Apr 1, 2010
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