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Today is the day FHA requires a condominium to be on their FHA approved list. If the condo is not on the list the loan process will need to go through a review process that can take from 4-6 weeks. It is getting harder and harder for home buyers to get loans and harder for sellers to sell.
With an FHA loan the homebuyer is only required to put down a 3.5% as a down payment whereas if the home buyer has to get a conventional loan to buy a condo they must put down 10-20%. So you can see how important it is for homeowner associations to fill out the necessary paperwork with HUD in order to get their complex FHA approved.
This could have a major impact on both condo buyers and condo sellers. Those condo buyers who are already in the process of purchasing and in escrow need not worry but as of February 1, 2010 all new FHA condo purchases must be on the FHA approved condo list.
Check to see if the condo you are looking at is on the approved condominium FHA list. (Wouldn’t you know, it’s a government website so it only works on Monday-Friday 8:00 am to 9:00 pm – can you believe it?)!
If you own a condominium, I would suggest that you speak with your HOA and get the process rolling if your condominium complex is not on the FHA approved list. You never know when you might want to sell your condo. Best to be prepared!
Other FHA articles:
90 Day Flip Rule Changed Feb. 1 2010
You are right on top of the FHA rules these days. Thanks for the helpful info!
Thanks Janis. Seems the rules are changing constantly. Not easy these days for the buyers to get loans.