Good Morning!
Until now you couldn't buy a Condo with an FHA loan unless the entire project was "warrantable" and approved by FHA.
Now you can get "single unit" approvals. Here's how it works...
Effective for case number assignments on or after October 15th, 2019, FHA borrowers may obtain Single Unit Approval (SUA) on non-FHA approved condominium properties that meet eligibility requirements (detailed below).
A Significant First-Time Buyer Opportunity!
As a result of FHA's new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
Condo projects that are not currently on FHA’s list of approved condos may be eligible for an FHA Single Unit Approval.
Target opportunities include previously approved projects that are now expired or were never approved.
FHA Single Unit Condo Eligibility
At least five units
10 or more units, up to 10% may be FHA-Insured
Less than 10 units, up to two FHA-Insured units
At least 50% owner-occupancy
HOA Budget 10% reserve requirement (or amount supported by reserve study)
Applications must receive an Accept from TOTAL Mortgage Scorecard or have a maximum 90% LTV for an Accept Risk Classification requiring a downgrade to Manual Underwriting.
Maximum of 35% commercial space
Maximum 10% individual ownership
Has a Certificate of Occupancy that was issued at least one year ago or has been occupied
Manufactured homes, gut rehab or new construction is not eligible
No more than 15% of units are 60 days delinquent
Not located in an approved condominium project or unapproved phase of a condominium project with an approved Legal Phase in HOA dues
So, if you or someone you know wants to purchase a condo - give us a call.
That's it for today!
Thanks for reading!
