FHA Spot Condo Approvals

By
Real Estate Mortgage Broker with Independent

(Spot The Target Dog)

 

FHA-approved condominium projects

When buying a Condo that requires FHA financing, the condo must meet certain strict requirements in qualifying for the Government Based FHA loan product.

The Standard Rule is that the Condominium Project must adhere to at least having 51% of the owners being owner-occupied in order to qualify for FHA financing.

Now if the Condo Project is just being built and has many stages of being built in the future then you can exception in Stage Development that requires case by case approval.

https://entp.hud.gov/idapp/html/condlook.cfm

 

Condos that are not approved

So what happens to the Condos that are not approved, can you still get FHA financing for them?

Just because the condo project is not on the approved list does not mean they are never to be approved.  Verify with the Condo Association to see if 1st they have over 51% owner-occupied then have the lender put in the necessary paperwork to get approved.

Be aware this process may take up to 6 months!!

 

FHA Spot Condo Approvals

So what if there is a condo project with less than 30 units?

I just had a client looking to buy a condo with only 5 units in the association.  We could still do the FHA financing if there is at least 20% of the owners who have an FHA financing already.

This approval process is considered Spot FHA Condo Approval.

It is really cool because we only needed 1 owner with a FHA loan and we didn't need to submit the paperwork to get this association approved because there is less than 30 units in this Association.

 

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Topic:
Mortgage / Finance
Groups:
1st Time Buyers
First Time Homebuyer
Mortgages
The FHA Mortgage Group
VIRGINIA
Tags:
fha
condo
spot
approval

Comments 16 New Comment

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Rainer
1,188
Katherine Montrose
Long & Foster REALTORS

How can I find out if there are any FHA mortgages within the condos?

thanks

Katherine

January 14, 2010 06:47 AM
Rainmaker
191,823
Eric Boucher
The FHA Condo Approval Guy
ReadySetLoan Condo Team LLC

Just wanted to shoot you an update that the Spot Approvals are no longer acceptable to FHA.  If the complex is not approved, FHA financing is not available.  In addition, the USDA RD loan program uses the FHA approved condo list so this financing wouldn't be available either.

All complexes will have to be recertified through HUD every two years so complexes that were approved prior to October 1, 2008, will have to be recertified by December 7, 2010.

I can help with the approval process if you know of a complex that is not approved but can be.  All complexes should take advantage of the lenient temporary guidelines that HUD has in place for 2010 because it will be harder to get approved next year.

Eric Boucher

eric@righttracfg.com

 

February 09, 2010 12:34 PM
Anonymous #14
Anonymous
Nadine Cook

If the condo community is not on the approved FHA list, is there any way of obtaining an FHA spot check post the new regualtions? If so, please advise. thanks. 

September 05, 2010 12:55 PM
Anonymous #15
Anonymous
Anonymous

hey whats up yo?:D

November 17, 2010 04:24 PM
Anonymous #16
Anonymous
Kevin Li

target is way better then Walmart and they have lower prices too!!! GO SPOT!!!

April 20, 2012 05:59 AM
Anonymous
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Rainer
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Justin Williams

Loan Officer
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