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HUD/FHA Approval For Condominium Complexes
It is important for Your Condominium Community to become HUD/FHA Approved
The Feds changed the game.
The next step is to be HUD and FHA approved before your condominium community can provide FHA loans for your buyers. Once your complex is approved you have to be re-certified every 2 years.
In case your condo community isn't HUD/FHA approved you are passing up on a lot of buyers.
For those who can't be eligible for a conventional loans the FHA loan program is the answer.
According to DQ News in April 2011 - 33.4% from the purchase mortgages utilized in 20 of the largest metro areas were FHA-Insured and the November 2010 Realtors® Confidence Index reported that Nationally 39 percent of latest buyers obtained a home with FHA-insured loans.
In case your condominium community is not FHA approved you're missing out on a lot of potential customers. This can also affect current homeowners when they visit sell their unit.
For a lot of very first time house buyers qualifying for any conventional loan isn't possible. Through the FHA you will find programs that make it practical for these folks to get affordable financing.
The advantages of the FHA Loan Program
- A low deposit
The FHA program lets buyers put less than 3.5% from the purchase price down. As you can imagine this opens many doors for people that wouldn't otherwise be in a position to think of a conventional down payment.
- Help with closing costs
Qualified applicants can also receive as much as 6% towards settlement costs. This further reduces the loan and down payment amount.
- Co-Signer requirements
Another area of the program enables a blood in accordance with co-sign. Why is this program different is that if the home-buyers do not have sufficient credit to qualify by themselves a blood relative can co-sign while not having to live in the home that is being purchased.
With the aid of those benefits people with little credit, low and moderate incomes and very first time home buyers convey more possibilities to find affordable housing.
These kinds of people constitute a large part of those buying homes. Very first time house buyers are often the ones that are less qualified for conventional loans. Without being HUD approved your condo community won't be able to provide affordable financing in the FHA.
Recently HUD made drastic changes for their condo approval program. These changes jeopardize the supply of FHA loans for condominiums.
HUD Changes:
- Removal of spot approvals
- Mandatory re-certification for projects approved just before 2009
- Re-certification every 24 months
The removal of spot approval may cause major concern and trouble for your condominium community. Spot approvals gave every condo community a way to assist people requiring FHA programs. Loans were decided on an when needed basis.
If you were relying on spot approvals to obtain financing for all those homebuyers that require FHA assistance that option is no longer available. You won't be capable of getting FHA help to buy a home within your community.
Now full HUD approval is needed for anyone wanting to use the FHA loan program.
If your condominiums need to be certified or re-certified this is the time to get it done. It is anticipated that there is a boatload of applications to HUD for FHA approval within the next few months so get yours in now. First come - first served.
