Why are so few condos fha approved in Houston, Texas?

Asked by anc24, Houston, TX Fri Aug 29, 2014

How can I get someone to get a condo approved? I asked my lender they said ask the association. I have left messages and emailed a few and haven't received any response. This city is 5 million people, how can this be happenning?

Help the community by answering this question:

+ web reference
Web reference:

Answers

3
Sun Mar 1, 2015
For an updated list of FHA approved condos in Houston, TX see http://homebuyerwise.com/FHA-Approved-Condos/city/Houston-TX_25799 . This link is available nights and weekends unlike the HUD site. FHA approved condos are easier to sell because buyers can put down a lot less money.
0 votes
Mark McNitt, Agent, Houston, TX
Thu Sep 4, 2014
When the recession hit in 2008, HUD (they run FHA, VA, etc) declared ALL condo and town home communities were NOT FHA/VA approved, and would need to resubmit their papers to get approved.

It is somewhat complicated why they did this, but the idea was to clean up HUD's review of all communities. You can visit http://www.HUD.gov and see all the communities in Houston and if they are approved. Also, one of the main requirements for approval is the community be +51% owner occupied. When the recession hit and nothing was selling, many home owners had to lease their units thus the renter/owner ratio is heavy renter in many places.

How do they get approved? Someone need to download the paperwork from the web site, fill it out, and send it back. The Houston area is covered by the FHA office in Denver. It can be anyone, but likely the management for a community will have the information needed. Lenders do not get communities approved. If you like a community, you would likely need to get assistance from home owners as well as their management company.

If you can get this done, units within the community will be easier to sell and prices will likely go up. Until then, cash or +20% down will be the only way to purchase a NON-approved condo.

Mark McNitt
Bernstein Realty
m 832-567-4357
0 votes
Stacy Burgin, Agent, Fulshear, TX
Fri Aug 29, 2014
FHA has rules and regulations about light poles and such things have to be so far from the property so FHA requires things before approving a loan so you will find new construction condos will do FHA, but after they are full and all sold usually you will see FHA then won't do them. Do you have a realtor helping you? If not I can assist you
Stacy Burgin
713.409.7698
stacy@terrapointrealty.com
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more