Good News On Condo Purchases From FHA...

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!

 

 

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