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: