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Condo Association not FHA approved

 
 
Linkat
 
Reply Mon 5 Oct, 2009 09:50 am
From a neighbor that is trying to sell their condo I heard that our association is not FHA approved. This concerns me as we hope to sell our condo in a year. And I was also a bit shocked because we have a very financially healthy condo association with very few renters. I asked if she knew why we were not " she didn’t, but noted that our association is not listed on the approved FHA website.

Does anyone know what the qualifications are? If we are not currently qualified, is there some way we could become qualified?
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Type: Question • Score: 2 • Views: 4,944 • Replies: 17
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panzade
 
  1  
Reply Mon 5 Oct, 2009 09:55 am
this is a good site for investigating why your condo may not be FHA approved. It seems your owner /occupied numbers are good.
http://www.hud.gov/offices/hsg/sfh/faqs/atl1val.cfm
JPB
 
  1  
Reply Mon 5 Oct, 2009 10:07 am
@Linkat,
Has the condo association ever submitted the complex for approval? I don't think it's necessarily means that it doesn't meet the standards. It may simply be that it's never been submitted.

Quote:
2) Q. How can I get a Condominium approved?
A. The guidelines for submission of Condos are set forth in HUD Handbook 4150.1 Rev-1, Chapter 11. Generally, the necessary documentation is submitted to HUD by a mortgage lender. Since most mortgage lenders are familiar with the information necessary for HUD to process the request, we strongly recommend that individuals, such as buyers and builders, use the services of a lender to make the submission. Copies of the handbook can be obtained from our Internet page at http://www.hudclips.org or may be ordered by calling (800) 767-7468.

joefromchicago
 
  1  
Reply Mon 5 Oct, 2009 10:23 am
@Linkat,
From my experience, the FHA doesn't like condo associations that have a right of first refusal on offers for any condo for sale.
Linkat
 
  1  
Reply Mon 5 Oct, 2009 11:21 am
@joefromchicago,
I'll have to check to see if we have anything like that - I don't remember coming across that when we were trying to sell.
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Linkat
 
  1  
Reply Mon 5 Oct, 2009 11:21 am
@JPB,
Thanks -I'll check with one of neighbors we know well that serves on the board.
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Linkat
 
  1  
Reply Mon 5 Oct, 2009 11:25 am
@panzade,
Seems like they haven't applied - it did not show as being approved or not approved.
panzade
 
  1  
Reply Mon 5 Oct, 2009 02:30 pm
@Linkat,
well...that's that
Linkat
 
  1  
Reply Mon 5 Oct, 2009 02:32 pm
@panzade,
And I'll be no their case (the association that is). Wonder why with so many places for sale (about half a dozen) that no one has looked into this? I've heard that about half of potential buyers are fha mortgages.
sullyfish6
 
  1  
Reply Mon 5 Oct, 2009 05:59 pm
Why do you want that designation?
It will bring you evey low income buyer from 100 miles.
roger
 
  1  
Reply Mon 5 Oct, 2009 06:01 pm
@sullyfish6,
To make it easier to sell
joefromchicago
 
  1  
Reply Tue 6 Oct, 2009 08:24 am
@Linkat,
Linkat wrote:

And I'll be no their case (the association that is). Wonder why with so many places for sale (about half a dozen) that no one has looked into this? I've heard that about half of potential buyers are fha mortgages.

Well, it's not like the FHA is going around certifying condo associations. The only time that the FHA looks at an association is when a borrower is considering buying a particular condo. At that point, the FHA will send a questionnaire to the association, asking about things like the association's right of first refusal, insurance coverage, and the percentage of units that are owner-occupied. And it's done on a case-by-case basis, so one purchaser might be able to get FHA approval while a subsequent purchaser in the same building, under changed circumstances, might not.
Linkat
 
  1  
Reply Tue 6 Oct, 2009 10:55 am
@roger,
Thank you - I was informed that about 50% of the buyers are using fha mortgages - by not being approved that means 50% less potential buyers.
0 Replies
 
Linkat
 
  1  
Reply Tue 6 Oct, 2009 10:57 am
@joefromchicago,
Then why is there a list of condo associations approved by fha? Also, the woman I spoke with that is trying to sell her condo had some one come by that was looking for FHA loans. When they heard the association was fha approved yet - they lost interest.
joefromchicago
 
  1  
Reply Tue 6 Oct, 2009 11:37 am
@Linkat,
If the FHA has a list of approved condo associations, that's news to me. Our association had two units where purchasers attempted to obtain FHA loans, and in both instances the FHA sent us the exact same questionnaire. Since conditions in an association change over time, I'm not sure why a list would have any value. It's not as if the FHA follows the rule of "once approved, always approved."
Linkat
 
  1  
Reply Tue 6 Oct, 2009 02:47 pm
@joefromchicago,
Click panazade link above - it gives approved condo associations. Also, the woman selling her place was told by our association that she look on the FHA website to see if our association was FHA approved.
panzade
 
  1  
Reply Tue 6 Oct, 2009 03:09 pm
@Linkat,
I noticed that they don't just approve a whole complex, but rather break it up into buildings. So it's possible that the 4 units in one building may be approved but the building next door might not.
Linkat
 
  1  
Reply Tue 6 Oct, 2009 03:15 pm
@panzade,
Now thats really odd.
0 Replies
 
 

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