FHA Changes that Affect Condos

Effective Feb 1, 2010, the way condos are approved by FHA will be changing. First, the lender will be required to recertify certain information on condos that are already approved by FHA and appear on the FHA approval list. Here are some of things lenders will need to verify: 1) no more than 10% of the units are owned by a single investor; 2) no more than 15% of the units are behind (in arrears) on their condo fee; 3) at least 50% of the units must be owner occupied; 4) no more than 30% of the units can have an FHA loan; 5) the budget must have adequate reserves 6) the condo must be properly insured; 7) there can be no pending litigation against the condo; 8) pending special assessments must be analyzed

For condos that have never been approved before, the process of getting a condo approved is actually simplified under the new rules. To get a condo approved by FHA the loan officer will have to gather the condo docs, budget and other supporting documentation and submit it to the HUD office in Philadelphia for approval. Items 1 - 8 mentioned in the previous paragraph all appy.

We are happy to assist in getting condos approved in our market where we are licensed to lend (NH, Mass & Maine). Call us with all of your condo questions.

Contact the Amazing Loan Ladies at NHmortgages.com