The Federal Housing Administration recently announced plans to begin disqualifying condominium associations from FHA financing if an association charges a deed-based transfer fee at the time of sale. This puts FHA at odds with the Federal Housing Finance Agency, which earlier this year determined that such fees benefit community associations...
FHA Certification – Mortgage Squeeze
Condominiums are feeling the pinch of the Federal Housing Administration’s new certification requirements as many find themselves ineligible for FHA approval. That’s left owners and buyers without the option of cheaper FHA mortgages.
New FHA Policy Guidelines
For those of you who live in condominiums, you know how important FHA approval can be. Without such approval, purchasers can have difficulty obtaining financing for purchasing a condo. (After all, FHA-insured mortgages are between 30 and 40 percent of all condominium mortgages, and FHA insurance is typically required on mortgages where there is less than a 20 percent down payment.)
FHA approval requirements have been in flux for many months. Last week the FHA issued a “Consolidation and Update of Approval Requirements” that formalizes many of the requirements. At a minimum under the guidelines, to be eligible for FHA financing a condominium must:
FHA Leasing Waiver Announced!
FHA Issues Waiver on Leasing Restrictions
Leasing restrictions have been one area of the FHA condominium guidelines that has caused problems for associations seeking to get FHA approvals. CAI has brought this issue to FHA’s attention and has petitioned FHA to review these criteria. On March 18, 2011, FHA issued a waiver that will provide greater flexibility on leasing restrictions under the FHA condominium insurance program. This means that many condominium associations whose FHA approval was rejected due to rental restrictions may now qualify under the FHA waiver.