FHA condo
In accordance with the passage of the Housing and Economic Recovery Act of 2008 (HERA), the Federal Housing Administration (FHA) is implementing a new approval process for condominium projects and insurance requirements for mortgages on individual units, as authorized under Section 203(b) of the National Housing Act.
December 7, 2009 FHA will now allow lenders to determine project eligibility, review project documentation, and certify to compliance with Section 203(b) of the NHA and 24 CFR 203 of FHA’s regulations. FHA will continue to maintain a list of approved condominium projects.
Lenders will be required to retain all the project legal documents, contracts, conveyances, plats, plans, insurance coverage, presale and owner occupancy conditions and other documentation in connection with their review and approval of the condominium project..
FHA condo
The following documentation is required for Condo Project Approval:
- Declaration of Condo Ownership
- Covenants, Conditions and Restrictions (CC& R's)
- Articles of Incorporation
- Adopted Bylaws
- Ground Leases (only if not fee simple)
- Site Plan (only if new construction)
- General Plan of Developement (only if new construction)
- Location Map
- Floor Plans
- Proposed or Actual Budget for 2014
- Reserve Study (only if we determine we need)
- Management Agreement
- Fema Flood Map
- Condo Questionnaire
- Walls In homeowners policy
- Master Insurance Policy
- 2yr Budget/Financials (prefer audited, if not, need letter who prepared and association with HOA)
Minimum credit score
To qualify for an FHA loan for a Condominium Project using Direct Endorsement Lender Review and Approval Process you will need a minimum credit score of 580.
HUD allows the lender to approve the Condominium Project.
