FAQ’s | About FHA Condo Approval 2015
How long does the entire FHA approval process take?
The FHA condo approval process typically takes anywhere from 30 – 60 days, however this timeframe is completely dependent on each project and their particular situation. Click here to review the entire FHA Condo Approval Process.
How much does FHA Condo Approval cost?
$850.00 is the total cost. IF your community meets our eligibility requirements and does not pass, you don’t pay. Its that simple! We also offer discounts to returning clientele.
Does the size of the community affect the approval time?
NO. Even a small 2 unit condominium will take 30-60 days for approval. There is no preferential treatment given by the FHA to smaller communities.
Is your company Nationwide?
Yes. We can gain FHA or VA approval in all 50 states, Guam, Virgin Islands, and Puerto Rico.
What are the recent Changes?
As you are aware, there have been changes in the world of FHA financing, and it is affecting Condo Communities everywhere. Prior to 2010, communities were either already FHA condo approved (by the developer) or could be purchased using a “FHA Spot Approval”. The “Spot Approval” process has since been eliminated, and all Condos were given expiration dates for their FHA condo approval. Many HOA Boards and Property Managers are frustrated by these recent changes and have many questions regarding FHA condo approval.
What is FHA Certification for Condominiums?
FHA Certification is the method used by HUD (the Department of Housing and Urban Development) to ensure that Condominium Complexes meet detailed criteria to ensure that they are financially stable and managed properly. HUD uses the certification process as a risk management tool to reduce the probability of foreclosures on FHA insured loans on condominiums. This new “FHA Approval Process” is a detailed review of the Condominium Projects legal documents, financials, and overall health of the community.
Is this new?
The FHA condo approval process is not new, however it has changed considerably over the past five years. Prior to the changes, a Condominium Complex only had to become certified once – and the certification never expired. As an effect of the mortgage crisis, HUD required the FHA to give all condominium complexes expiration dates and develop a new set of guidelines. The most recent set of guidelines went into effect August of 2011, and the last set of expiration dates was September 30, 2011.
Is FHA Condo Approval Required?
No. Associations are not required by any law or statute to apply for FHA Certification. However, being FHA condo approved can greatly increase the marketability of units within your community and have a positive effect on overall value of the units.
Why weren’t we notified of the expiration date?
The expiration dates were published on HUD website. HUD does not have a notification system in place. At fhareview.com we notify all our customers when renewal is required (every 2 years).
My HOA has a resident asking the Board to get FHA condo approval – why should the Board pay for this if it only benefits one homeowner?
FHA Certification benefits the entire community, even if there is only one unit up for sale. Since the buying pool is severely limited, chances are your Resident will need to lower their purchase price to attract buyers. The lower overall purchase price will affect the value of all units in your community.
Is there a price difference for a new FHA certification vs. a re-certification?
No. The process is exactly the same. There is hardly any difference in the paperwork that we submit, so we do not change the price. The FHA keeps nothing on file. We do offer a “returning customer” discount for communities who continue to use our service to renew their certification every 2 years.
What documents are required for FHA Condo Approval?
for FHA Condo Approval, you will need to provide us with many documents. Click here to see the full list.
Will the FHA Certification expire?
Yes. Condo communities will need to re-certify for FHA approval every two years. There is currently no difference in the “re-certification” process, however in the future the FHA is planning to streamline it.
Does a PUD (Planned Unit Development) need FHA approval?
No, Only Condominiums need FHA approval. In general, if your Declarations or CC&R’s use the word “Condominium” you will need FHA approval.
Do Site Condominiums need FHA Approval?
No. Site condominiums do NOT need FHA approval. Site condominiums meet the following criteria:
- Single family totally detached dwellings (no shared garages or any other attached buildings or e.g. archways, breezeways); and
- Are encumbered by a declaration of condominium covenants or condominium form of ownership; and
- The condominium unit consists of the entire structure as well as the site and air space and are not considered to be common areas or limited common areas; and
- Insurance and maintenance costs are totally the responsibility of the unit owner; and
- Any common assessments collected will be for amenities outside of the footprint of the individual site.
Feel free to contact us for additional information regarding FHA condo approval or the submission process.
Copyright 2012 – www.fhareview.com