FHA condo certification for the State of Florida

75% of condos in Florida that we review do not meet FHA and VA guidelines due to leasing/renting rules.  If you have a Florida project, please be sure that it meets ALL of the following criteria:

  • Leasing Restrictions in the declarations must comply with the following:
    • The HOA must allow for leasing in the community
    • No transient leasing of units – defined as less than 30 days (This guideline applies to FHA only, not VA)
    • No “Seasoning Clauses” (A restriction that requires a unit owner to occupy the unit for a specified time-period before they can lease)  Some circumstances with hardship clauses may be OK, but its case-by-case
    • The Board of Directors cannot have the power to:
      • Approve leases or deny leasing.  The unit owner must have the right to lease to any tenant
      • Impose background checks, credit checks, or any other type of screening for prospective tenants.  The unit owner may impose these checks, but not the HOA or Board of Directors.  Most of the condominiums that we review in Florida do not qualify for FHA approval for this reason.

If the HOA does not meet the above criteria, the HOA is not eligible for FHA or VA.  The HOA will need to amend their legal documents to remove these policies to become FHA or VA Approved.  Amending these policies usually takes board initiative, and a vote of the entire community.