FHA Certification and HUD Changes
What is FHA Certification?
The Federal Housing Administration (FHA) is not a mortgage lender—but a federal agency that insures mortgage loans from approved banks and lenders for properties that meet the FHA’s requirements.
What types of HOA’s have to get FHA certification approval?
HOAs consisting solely of single-family homes or townhomes are not required to get FHA certification approval for the prospective buyers to potentially be eligible for FHA loans. However, condominiums typically have required FHA approval for the whole project.
What are FHA approved Condominiums?
FHA approved condominiums are simply residential properties that meet the specific requirements of the U.S. Department of Housing and Urban Development and have been fully vetted by the administration. Prospective buyers are then potentially eligible for FHA loans if they purchase a condominium within the FHA approved condominium project.
What happens on October 15, 2019?
The Federal Housing Administration (FHA) finalized regulations and policy implementation guidance to establish a new condominium approval process.
Pre-October 15, 2019
Condo certifications only lasted for 2 years before needing to recertify with HUD.
An individual condominium unit could NOT be eligible for FHA mortgage insurance if the condominium project was not certified.
Mixed use condo projects with up to 25% of their square footage dedicated to non-residential use may be approved.
Post-October 15, 2019
Condo certifications will last 3 years before needing to recertify with HUD.
Certain individual condominium units WILL be eligible for FHA mortgage insurance even if the condo project is not FHA approved.
Mixed-use condo projects with up to 35% of their square footage dedicated to non-residential use may be approved.
To learn more, please attend our upcoming class, held at 12:00 PM on Monday, October 28, 2019 in the WesternLaw Group sixth floor conference room, located at 9351 Grant St #120, Thornton, CO 80229
Questions? Contact Us: info@westernlawgroup.com | (720) 542-8724