Discussions like FHA Approved Condo, list, what makes it, How to get it, Questionnaire are all we are going to discuss about in this post.
FHA APPROVED CONDO
FHA-approved condos are condominiums eligible for FHA loans and also, the federal housing administration insures the FHA. This is for first-time homebuyers and people who have not owned property in the last three years. But note that not all condos offer buyers the chance at FHA loans. Because some condo associations are not happy about attracting owners who need a lower down payment to qualify. The associations believe this means those owners are more likely to default.
FHA-approved condos are simply the condo that meets the minimum standards to be FHA eligible set forth by the Federal Housing Administration. On September 1, 2019, the entire condominium project was no longer needs to be approved. And FHA eligible could finance one of the units within the condominium project. Also on the 1st of September, 2019 there was a change in FHA guidelines on FHA condos allowing for just a single condo unit to be FHA eligible even if the entire project isn’t approved yet.
ADVANTAGES AND DISADVANTAGES OF CONDO LIVING
CONDO living like everything else has its own fair share of advantages and disadvantages that comes with it. To know the advantages and disadvantages of living in a condo home is to be on a safer side of knowledge. Just so you know what and what to avoid and when to sit and relax.
Some of the advantages of living in a condo home include
- Affordability comparing to single family homes in the same area
- Maintenance free because all the exterior maintenance is covered by the condo association
- Additional Amenities like pool or sometimes fitness room are most times inclusive in these homes
- Security is always better with condos comparing securities of single family residences
- Reduction of transient neighbors
- Homeowners insurance always secured the condo association
- Property taxes are lower comparing them to the taxes of a single family residence
Some there disadvantages include
- Monthly association fee to cover maintenance and insurance is necessary and on demand
- Reduction in privacy comparing to a single-family residence with the possibility to have noisy neighbors
- Financial stability of the condo association is always intact
- Limited or no permissions to make exterior décor changes thereby restricting your activities and change effects in the home
- Strict and most times discomforting rules set forth by the condo association
FHA APPROVED CONDO LIST
Some lenders sometimes, choose not to offer everything that the FHA guidelines require. Like for instance, some of them implement their own credit score minimum that is always higher than what the FHA minimum is sometimes exorbitant.
Below is a list of FHA-approved condos lenders list that is willing to finance your condo. There are still elements of each lender which may likely or not apply to you. So, your best bet is to share what you are trying to accomplish with an experience approve condo company or agency. And be sure that they will help you to decide which lender is best for you especially in your area.
The list of FHA-approved condo list includes reputable agencies and companies that help people secure a condo for themselves at a good rate and conditions. Some of them include
- Carrington Mortgage Services
- Amerisave Mortgage Corporation
- Home bridge Mortgage
- Academy Mortgage
- Flagstar Bank
Finding or purchasing condos with an FHA loan is much easier now than before due to the recent changes in the FHA rules on approved condos. Condo buyers no longer need to worry about whether the condo project is already approved. Specifically by the Federal Housing Administration before they can already secure approval for the unit they play to purchase. These 5 companies and corporations are popular for securing safe condos for buyers. Particularly why they are enlisting among the 5 good FHA-approved condo lists.
WHAT MAKES A FHA CONDO APPROVED
What makes an FHA condo approved is a popular question you encounter daily while solving buyers’ condos. If you are interested in owning a condo now or in the future. Then you should also be asking the question of what makes an FHA condo approved. Knowing your way around these simple eligibilities will aid you to understand what you should expect from your lender.
There are certain levels or criteria an FHA-approved condo should meet up to before you can fully be sure it is approved. In a situation where an FHA condo fails to possess the criteria then be certain it is not yet approved.
Some of the criteria of what makes an FHA condo approved include the following
1. Ensure that the condo project is and must be to fully insure
2. The homeowners association needs to have two years’ worth of reserve funds. Just in order for them to be able to cover repairs
3. The condo project must be fully constructed as well as duly completed
4.10% of the homeowner’s association dues (HOA’s) at least go to a reserve account for emergency purposes.
5. Approval or denial of potential renters are not abilities the condo committee possesses at any stage.
6. At least 25% of the units will be the owner’s occupants and not in any way rentals
7. Maximum of 15% of the units may be delinquent on their dues for more than 60 days
8. Also, a maximum of 60% of the condo project can on this ground be put in use as commercial space or retail
These are the basic requirements that make an FHA condo approved answering your mystery question of what makes an FHA condo approved. The above requirements are not much so if you wish for your condo to be approve. Then, most of your lender’s projects should be able to sit straight on the requirements.
HOW TO GET A FHA CONDO APPROVED
Getting an FHA condo approved might be the most stressful part for most people. It’s important to know the steps you need to take on how to get your FHA condo approved. As you already know without approving your FHA condo there is absolutely no way you could use it meaning it is practically illegal and useless.
So, it is really important you get an FHA condo approve. And in this part of the post, we are going to discuss the basic and main steps on how you can get an FHA condo approved. These easy steps are all you need on how to get an FHA condo approve and they include
- The Condo must specifically be an FHA-Approved Project a very necessary first step that should not be ensure lightly.
- Proper Insurance Coverage by the condo association must be in place and ensured
- Location of the condo Everything and likewise very important and vital
- There should always be restriction on Individual Ownership
- Full-Time Owner Occupancy should be in place
- Ensure that the condo is in no way a ‘Condotel’ Resort Property
- Limit the Commercial Usage of the Property
- Always ensure to abide by the Fair Housing Act.
Going down and obeying these steps is the simple road on how to get an FHA condo approved with less stress and a proper selection of your condo location. Other requirements and steps will fit in occasionally to the criteria with ease.
Do VA condos have to be approved?
Yes! The longer response: Using a VA loan to purchase a condo is similar to using one to purchase any other house, except the condo complex must be VA-approved. The goal of this approval is to make sure that those who qualify for a VA loan aren’t in any manner unduly burdened by the HOA.
What is HRAP and Delrap?
Process for HUD review and approval (HRAP) Advocacy Direct Lender Review and Approval Process (DELRAP) for lenders with trained employees and unrestricted Direct Endorsement authority for examining and approving condominium projects.
Why do some condos not accept VA loans?
“Accepted with conditions” indicates that there are still some problems that the homeowners’ association for the building needs to fix.
Why do some condos not accept VA loans?
“Accepted with conditions” indicates that there are still some problems that the homeowners’ association for the building needs to fix. For instance, a brand-new condo complex might not have sold enough apartments. Until additional apartments are purchased by buyers, VA loans cannot be used to purchase in such structures.
How long does it take to get approved for FHA?
An FHA loan typically requires between 30 and 45 days from the time of application to the time of closing. Your loan file passes through underwriting during this period. In order to make sure you comply with the requirements for FHA financing, the underwriter examines your application in further detail and examines any supporting materials.
How long is an FHA approval good for?
FHA is expanding the initial appraisal validity period for the majority of Title II forward and Home Equity Conversion Mortgage (HECM) originations from 120 days to 180 days and the appraisal update validity period from 240 days to one year.
What is the maximum FHA concentration?
Currently, no more than 50% of units may be covered by FHA insurance.
