Take Advantage of New FHA Condo Changes

10/28/2016
Comments
  • Great idea for Realtors to market to condo owners, but…..who is going to submit the project to FHA for approval? That’s not an easy task. When FHA goes back to spot approvals, then we’ll really have something!

    Nathan Davis October 28, 2016 3:26 am Reply
  • Until FHA goes back to spot approvals in California,they will continue to lose the condo business.

    Jeff Altman October 28, 2016 6:29 am Reply
  • So…. who is going to have the condo complex FHA approved ? and spend the money and time getting his project approved ? Small detail. There is no FHA spot condo approvals like in the old days. That would be meaningful change

    Eb October 28, 2016 6:34 am Reply
  • I looked up the FHA approved condos in Burleigh County, where I live. Of the 5 listed, only 3 were approved! Yes, that’s 3!! The other 2 for denied because they were missing paperwork. I recently had a condo listed and the association was trying to get approval. They were told they couldn’t get approval because they didn’t allow rentals?! First time I’ve heard that?? Has anyone else found that? Doesn’t make any sense for FHA to say, too many rentals is bad, but NO rentals is also also bad!

    Mary October 28, 2016 9:07 am Reply
  • I may be wrong, but you may be misleading the realtors a bit on this otherwise great suggestion. I believe the reduction in owner occupied percentage allowance would apply at the time of an association applying for FHA condo approval. So if they were currently under 50% owner occupancy rate, that means they are likely not currently FHA approved. So the HOA would have to go through the approval process before we could close an FHA loan in such an association. I believe that FHA is considering allowing the ‘spot’ or ‘one off’ approval again, but I don’t believe that is allowable yet, correct?

    Twila Hanks October 28, 2016 9:14 am Reply
  • This is an improvement, but still isn’t a silver bullet for most condos. If I’m wrong, occupancy ratio is irrelevant for FNMA/FHLMC when the subject is owner occupied. Unless someone absolutely has to go with FHA, I’d still rather go the route of a conventional loan.

    Patrick Boehler October 28, 2016 9:58 am Reply
  • Seriously, I don’t understand how this makes any difference until we have spot approvals again.

    Todd Sevier October 28, 2016 10:40 am Reply
  • Here’s another glitch in these new rules–FHA requires that the HOA transfer 20% of annual dues to their reserves account and I bet most of these HOAs can’t due that without raising HOA dues.

    Lonnie Glessner October 28, 2016 2:28 pm Reply

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