If you are looking to use an FHA Loan, or obtain a Reverse Mortgage within a condominium association, the entire complex will need to be FHA approved.
By now, you have probably already determined that your condo (or condo of interest) is not FHA approved, so here are the basics about the FHA approval process.
The process of getting FHA Condo Approval generally takes between 2-4 Weeks. Processing time will depend on:
It is possible for us to rush the application process through our office, however, there is no way to expedite a file through the FHA.
The cost of FHA Approval depends on their current status with the FHA:
The FHA certification will be good for 3 years. During this time, anyone within the community can utilize the following:
To get started we will need a few things directly from the Condo Association. This will include:
For the Step 1 Questionnaire, please complete our Get Started Form so we may provide you some information related to your specific condo.
We won’t know if a Condo qualifies for FHA approval until we review the documents, and bounce them off the guidelines.
We can advise you of the most common problems we face. Here are the “Show-stopper” issues we see:
Not ALL communities will qualify for FHA Condo Approval. Most issues we encounter can be fixed, but some cannot.
The FHA Condo Approval process has gotten a bad reputation for being a long, difficult, and expensive process. However, the truth is, the FHA Condo Approval process isn’t that bad. Here is the process broken down:
Here is a quick bulleted list of the 2020 FHA Condo Approval Process using FHA Review:
The Management Company or Condo Board will provide us with a completed questionnaire and some HOA documents.
We’ll review this information and make sure it meets FHA Condo Approval Guidelines.
If we uncover eligibility issues, we’ll work with the Property Manager to fix them. This can add time to the FHA Condo Approval Process depending on the issue.
If it all looks good, we’ll submit to the FHA for a flat fee ($765 – $850)
The FHA takes about 3-4 weeks to issue the FHA Condo Approval.
Property Manager or Board Member will complete our Eligibility Questionnaire. Our processing team will review the file and see if it meets FHA Condo Approval Guidelines.
If we find zero eligibility issues, we’ll move on to Step 3.
If we discover things in our review that conflict with the FHA Condo Approval Guidelines, we will recommend a course of action to bring the community up to FHA Eligibility Standards. It will be up to the Property Manager or Board to fix these issues.
After the eligibility criteria are met, we will build and submit your application to the FHA for Condo Approval. The FHA generally responds to us within 2-3 weeks; however, it may take up to 30 days.
At this point, the FHA Condo Approval process is complete. Once your community is FHA Condo Approved, you will be notified and emailed a certificate.
At FHA Review, we offer a “Don’t Pass, Don’t Pay” guarantee to associations who meet 100% of the eligibility requirements.
Per our contract, we will obtain your community’s:
Other companies may expect you to find these documents, or charge extra. The only documents we request from you, the Management Company or the Board of Directors are documents that are not publicly available.
