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FHA Condo Loans - YouTube
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are you looking for an FHA loan to
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purchase a condominium well great news
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I'm going to go over that program for
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you hello I'm John Thomas with primary
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potential mortgage well if you're
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pre-approved for an FHA loan and you
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want to purchase a condominium the
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company itself must be approved by FHA
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in order for the you to qualify to buy
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so there's some guidelines that
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condominium must meet in order to be
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approved by FHA or
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hug hug the organization overtop of FHA
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and they actually submit you submit the
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packet to them they're going to approve
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the condominium so the first big
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guideline is 50% of the economy the
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names must be owner-occupied that means
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people that own that must be limiting
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them it's more than 50% of those
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condominiums are owned by investors it
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is not eligible for FHA financing the
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last it meets the new guideline that
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came out October 26 2016 and the
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mortgagee letter we'll talk about that a
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minute there's no longer any spot loan
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approvals or used to be a process - for
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the lender to actually spot approve the
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common name for approval that was taken
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away so it has to go through the
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approval process directly with FHA in
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order for you to approve it there is a
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list of FHA approved condos you can get
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that list on the website so our mortgage
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website Delaware's o-net if you click on
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the condo loans there is a link for you
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to check the list of approved FHA condos
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now the other thing is no person or
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entity can own more than 10% of total
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units so one investor cannot own more
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than 10% of the unit so if there's 100
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units in the condominium an investor
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cannot own more than 10 that one single
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investor or it's not eligible
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no more than 50% of the condominiums in
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the development could have current FHA
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loans on so the project must be a
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hundred percent complete 117 is sold in
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ten percent observing the budget and the
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HOA must be controlled by the owners to
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get an exception to that 50 percent rule
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so again no one is 52nd FHA a loan
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unless the project hunter can complete
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i'm seventeen's are sold there's 10
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percent reserve in the project
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budget and the HOA to control the co2
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control month owners now the approval
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process they must review FHA must review
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the homeowners association budget and
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insurance coverage and make sure it's
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adequate and meets their guidelines
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visiting condo projects must be
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recertified every two years if they
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don't get recertified they're no longer
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approved so the condominium association
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must go through a recertification
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process
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now again FHA is looking at change that
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are currently as of November 2016 this
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is the process now there is special
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rules for 203 condo loans so the
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condominium if you're trying to do tools
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we came along the condominium must meet
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the guidelines and you have to meet the
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guidelines for a 203k room so you have
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to meet both of those no more than four
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units per building 50% we talked about
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owner-occupied or more and then funds
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used for interior only so the funds
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you're buying the condo with are only
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for first thing the interiors the condom
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cannot be using those for any exterior
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shop because that's not owned by the
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owner that's owned by the condo
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association so those are pretty much the
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guidelines that the condo association
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must meet for you to get approved for
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your FHA loan to purchase that condo the
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condominium is the one who typically
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goes through the process of getting
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approved and the most common process is
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called the H wrap process through FHA
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now I think Jenny mortgagee letter came
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out October 25th 2016 he came up with an
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exception to the 50% owner-occupied rule
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it can be as little as 35%
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owner-occupied and still get the condo
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approval from FHA if it needs a couple
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guidelines first of all the applicants
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the application submitted by the condo
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association must be submitted on the 8
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react condo approval process funding of
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replacement reserves for capital
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expenditures and deferred negatives of
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at least 20% of budget and separate
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counts no more than 10% of the units can
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be in arrears for 60 days or more so
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that means if you have 100 units no more
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than 10 units can be 60 days late or
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more on their monthly condensate and
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then the condo association must provide
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three years acceptable financial
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documents if they do all that and
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the guidelines then the condo will be
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approved and it will be approved with
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down to only 35% owner-occupied condo so
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that's a big change for FHA that may
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open up a lot of condos right now that
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got turned down they can reapply and get
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approved so pretty much that's the
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information need to know where you are
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trying to use FHA loan to purchase a
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condo it's already on the approved condo
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list and the approvals expired go ahead
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and write your offer it is not only
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approved less board has expired you
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cannot purchase that condominium unless
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they reapply to get recertified or apply
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to be certified as a HUD approved condo
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if you have any questions feel free to
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give us a call three zero two seven zero
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three zero seven two seven or you can go
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online www more loans net so first thing
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you guys on the next low
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[Music]
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you
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