Condo Lost FHA Approval/Certification
Hello, What does it mean for a Condo complex to lose its FHA approved status? I am looking at investing in an REO Condo but one of the disclosures is that the Complex lost its FHA approval. How will this affect financing, titling ... etc? It also states that the Condo has less that 51% Owner Occupancy.
Thanks.
JS.
portfolio lenders (typically CUs and local bank) will be more likely to approve the financing.
If your association does not have a 51% owner occupancy it is my understanding that it is no longer FHA eligible.
I am in the middle of a transaction with a condo that FHA still states is FHA approved but my underwriter declined the loan because he found a "first right of refusal" in the bylaws. How the project got FHA approved in the first place is a mystery.
The association members/unit owners met last night and ratified an amendment striking this clause from the bylaws permanently. This amendment will be recorded in time for my closing, but it almost fell through because of the error on the FHA website. This was an eye opener for me. Lenders/buyers/sellers---beware of condo purchasing & selling!!!!