How Can I Check if My Condo is Approvable with FHA?
There are many different factors that go into an FHA condominium project approval. Some of them are involved and require time to go through, such as review of the financial statements and legal documents. Combined, those take up the majority of the review time.
However, there are some preliminary questions that can effectively rule out ineligible projects. These reasons are easy to spot and we place them on our prequalification questionnaire to eliminate those condominium projects that have no chance of getting approved with FHA.
Some examples of these reasons would be:
· Minority of owner occupants – FHA requires at least 50% of the units to be owner-occupied
· Not contributing 10% to the reserve account
· Condominium is a condo-hotel, houseboat community or a timeshare
· Excessive owner delinquency – no more than 15% of the unit owners can be 60 days or more in arrears in their payment of common charges.
There are other questions that are asked which may or may not render the project ineligible. For example, certain leasing restrictions and open lawsuits are not acceptable to FHA so we can rule these out during the prequalification process.
If the answers to the question point to the project’s ineligibility, we will offer solutions that would rectify these issues.
Only after we prequalify a condominium project will we enter into a service agreement. There is no sense in beginning the process if there is a glaring issue. That would be a huge waste of time and resources.
Our prequalification questionnaire is located on our website. You can click the graphic to the right to be taken to the questionnaire. Once completed, we will respond to you during the same business day.
Top image courtesy of master isolated images/freedigitalphotos.net
Sign image courtesy of phanlop88/freedigitalphotos.net
The Condominium Project Approval Team at ReadySetLoan is dedicated to helping condominium projects across the nation to obtain their approvals with FHA and the VA or become recertified with FHA. We have assisted nearly 200 condominiums and we can help your association.
ReadySetLoan is an active member of the Connecticut and New England chapters of the Community Associations Institute (CAI) and is a frequent contributor to Common Interest Magazine as an expert in FHA/VA condominium project approvals.
Please contact us with any questions regarding FHA or VA condominium project approvals. You can email me at askeric@readysetloan.com or call me at 404-433-4565. I will be happy to answer any of your questions.
FHA/VA Condo Approval Specialist
404-433-4565 Cell Phone
860-644-3772 Fax Phone
Check out our article in Common Interest magazine on page 19!
