Do You Know About the Changes HUD Has Made?
For many first time homebuyers qualifying for a conventional loan isn’t possible. Through the FHA there are programs making it possible for people to get affordable condo approval FHA financing.
Recently the HUD has made drastic changes to the program endangering the availability of these condo approval FHA programs. Due to these changes it is important that every condominium community gets FHA certified or recertified as soon as possible.
With our combined experience of over 30 years we can help your condo community become FHA qualified. We are the Condo Approval Group. We work directly with HUD to help you get approved.
It’s Important to Be FHA Approved
Now if your condo community is not FHA approved you will be missing out on a lot of potential buyers. This also will affect current homeowners. One of the largest groups of first time homebuyers is those that wouldn’t qualify for conventional loans and would need the help of the condo approval FHA program.
Changes That Were Made
- Elimination of spot approvals
- Mandatory recertification for HUD projects approved prior to October 2008
- Recertification every 2 years
The elimination of spot approvals can be the cause of major concern and problems for your condominium community. If you were relying on spot approvals to appeal to those homebuyers using condo approval FHA assistance programs they will no longer be able to get financing to purchase a home within your community.
Spot approvals gave every community the chance for people requiring FHA programs. Loans were decided on an as needed basis. Now full FHA approval is required for anyone wanted to appeal to the masses; many people that don’t qualify for conventional financing.
If your condominium needs to certify or recertify soon now is the time to do it. It is anticipated that there will be a lot of applications going through for FHA approval. With our help you don’t have to worry about the process. We will take care of everything from start to finish.
In order to keep the market value of your community it is imperative that you are FHA approved and recertify every two years. Don’t delay in getting started. If your condo approval FHA lapses it could cause a lot more time and trouble trying to certify again.
In the 1930’s the FHA developed a program to help insure loans made by credible lenders. This opened the door for people who were credit-worthy borrowers but were not able to meet conventional underwriting requirement. The program was to help those borrowers get funding while protecting the lender. This program applies to certain people as well as certain properties that have to meet minimum standards.
Other Benefits of the Program Include:
- Allowing a low down payment
The FHA program allows for as little as 3.5% of the purchase price. As you can imagine this opens many doors for people that wouldn’t otherwise be able to come up with a higher down payment.
- Help with closing costs.
Qualified applicants can also receive up to 6% towards closing costs. This further reduces the loan amount making it more affordable and doesn’t require additional funds to be put down up front.
- Co-Signer requirements.
Another part of the program allows for a blood relative to co-sign. What makes this program different is that if the home-buyers don’t have enough credit to qualify on their own a blood relative can co-sign without needing to reside in the home that is being purchased.
With the help of those benefits people with little credit, low and moderate incomes and first time home buyers have more opportunities to find affordable housing. These types of people make up a large part of those buying homes. First time home buyers are usually those that are less qualified for conventional loans. Without being HUD approved your community could suffer greatly for not being able to provide affordable condo approval FHA financing.