how to get condos fha approved?

Asked by Jwag, Brooklyn, NY Sat Apr 7, 2012

I am thinking of buying a condo in an up and coming neighborhood. I found one at a great price but it is not FHA approved. I plan on staying there for a long time ( well over 10 years) Is it possible within this time to obtain FHA approval. I can afford the condo without a mortgage or perhaps a very small one, so I would not need an FHA approved loan. However, I do realize that without an FHA approval I may have difficulty selling in the future, which is definitely the reason for the incredibly affordable price now. It is a 1025 square foot apartment with a finished basement and a backyard. It is really a sweet deal for the money, however I don't want to get into something that will eventually bite me in the ass. Does anyone have any input on this? Thank you

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7
Anna M Brocco, Agent, Williston Park, NY
Sat Apr 7, 2012
The entire complex needs to be in agreement regarding FHA approval beforehand ; for already approved condos see link https://entp.hud.gov/idapp/html/condlook.cfm
1 vote
Christopher…, Agent, Tarrytown, NY
Mon May 26, 2014
The complex has to apply for the approval. The FHA changed their guidelines in 2010 and that's why many condos dropped off the list. There is also SONYMA which allows for a minimum 3% down payment, financing of closing costs, and other criteria to FHA loans. One main stipulation is the buyer has to be a first time buyer and not exceed the maximum income limit which is about $150k. The other good thing about SONYMA is they don't have condo restrictions like FHA. Your mortgage broker will go over all of this with you.



Chris
0 votes
inna ivchenko, Agent, Calabasas, CA
Mon May 26, 2014
The list of FHA requirements can be downloaded at:
http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/09-…

this one can be helpful as well:
http://portal.hud.gov/hudportal/documents/huddoc?id=11-22mlg…

So, even the community is not FHA approved, or not renewed( should be done every 2 years),
it can be changed( if all requirements are in place: insurances, reserve, owner occupancy, investor ownership, financial documents, delinquent dues, etc.)

Good luck.
0 votes
Jack Menashe, Agent, Brooklyn, NY
Sun Apr 8, 2012
I think I may have what your looking for....
Unless its what your talking about ;)

Regards,
Jack M
917.797.0215
Jack@sherestates.com
http://www.sherestates.com
0 votes
Madeline Pad…, Agent, Brooklyn, NY
Sat Apr 7, 2012
Hi JWAG
Not sure why you are asking this question if you can afford the condo now without a mortgage and
don't need an fha loan, just buy it. NOW is the time to buy. The builder, owners need to apply for
FHA approval. Google FHA APPROVAL and see what comes up. Perhaps when you are an owner
you can get the ball rolling.

Nobody knows what will be in 10 years from now, crystal balls don't exactly work.
where is the condo what neighborhood sounds nice, how much is it? Good luck and BUY IT if you can.
madelinepadovano@fillmore.com
0 votes
Sam S. Spade, , 98273
Sat Apr 7, 2012
Getting your personal condominium FHA approved is possible but only by getting the whole complex approved. This is not as implausible as it sounds.

We get requests all the time to assist a condominium community in getting HUD/FHA certified. These requests come from a single condo owner or in some cases more than one condo owner. They request and pay for our services. We also have had cases where the buyer of a condo paid for the FHA/HUD approval for the community.

When you consider that just under 40% of current buyers are in need of FHA insured financing it just makes sense to be able to offer it to all those buyers interested in buying your condominium.

Just remember that currently approval is taking about 5 - 6 weeks, on the average, from the time HUD receives the paperwork.

Before you contact us about getting your condo HUD/FHA approved contact the manager or HOA of your condominium community.

Make sure that he/she is agreeable to your request. FHA approval requires quite a lot of information and paperwork that only the management of your complex can supply so make sure they are on board.

If you need more info feel free to call me at (360) 562 0406.

Bob
http://fhacondosapproval.com
0 votes
Thanks Bob! You answered my question. I want to purchase a unit in a condo but not FHA approved. They are at 50% owner/renter ratio and I can' t afford conventional. I've requested from HOA to get FHA approval. Thanks!
Flag Wed Dec 12, 2012
Julie Reardon, Agent, Madeira Beach, FL
Sat Apr 7, 2012
FHA financing is not available for many condos. FHA wants to see many features that would indicate a sound investment like there are not many in foreclosure, not many being sold short, the association is run by the homeowners and has a healthy reserve. In Florida, I use a local company to underwrite condos because they underwrite locally, can evaluate each property on a case-by-case basis and have less restrictions and requirements than the big banks. Unfortunately, I do not have enough info to counsel you on whether it would be a good risk. Hopefully the info about the FHA requirements will be helpful! GOOD LUCK!
0 votes
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