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Renovated Building

FHA & VA Approval
 Solutions For Condominiums

The Basics of FHA Condominium Approval

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If you are looking to use an FHA Loan, or obtain a Reverse Mortgage within a condominium association, the entire complex will need to be FHA approved. 

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By now, you have probably already determined that your condominium (or condo of interest) is not FHA approved, so here are the basics about the FHA approval process. 

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  • The FHA Approval process takes about 2-4 weeks.

  • The cost for FHA Approval is $600-$750.

  • The approval is good for 3 years.

  • The Condominium Management Company will need to provide some documents. 

  • Not ALL condominium complexes will qualify for FHA Approval.

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How long does FHA Approval take?

The process of getting FHA Condominium Approval generally takes between 2-4 Weeks.  Processing time will depend on:

  • How quickly we receive the Condominium Documents from the Management Company.

  • How eligible the community is, and what is needed to make them eligible

  • The caseload at FHA at any given time (maximum 30 days).

It is possible for us to rush the application process through our office, however, there is no way to expedite a file through the FHA.

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How much does FHA Condominium Approval cost?

The cost of FHA Approval depends on their current status with the FHA: 

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  • Condominium that has never been approved – $600

  • One that has been expired over 6 months – $650

  • One that is not expired, but is up for renewal soon – $600

  • A condo that is expired, but for less than 6 months – 600

  • Brand new construction less than 1-year-old – $750

  • A condo that has recently completed reconstruction law suit - $700

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How long is FHA Condo Approval good for?

The FHA certification will be good for 3 years.  During this time, anyone within the community can utilize the following: 

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  • FHA Insured Loan

  • Refinance with an FHA Insured Loan

  • Reverse Mortgage or HECM Loan

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Documents needed to start 
FHA processing 

To get started we will need a few things directly from the Condominium Association.  This will include: 

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  • Step 1 Questionnaire

  • Step 2 Requested Documents related to the condominium

For the Step 1 Questionnaire, please complete our Get Started Form in order for the processor to evaluate your condominium qualifications.

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Will the Condominium qualify?

We won’t know if a Condominium qualifies for FHA approval until we review the documents, and bounce them off the guidelines.

We can advise you of the most common problems we face.  Here are the “Show-stopper” issues we see:

  • The Condominium MUST allow leasing in the community or they will not be eligible

  • The condominium CANNOT have a Seasoning Clause in place.

    • When a unit must be owner-occupied for 1 year before it can be leased

  • Must fund a reserve/savings account, funded by at least 10% of their budget.

  • Board cannot have the power to approve or deny leasing, except to maintain a leasing cap.

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Not ALL communities will qualify for FHA Condominium Approval.  Most issues we encounter can be fixed.

The 3-Step FHA Condominium Approval Process

The FHA Condominium Approval process has gotten a bad reputation for being a long, difficult, and expensive process.  However, our team of experts have mastered the process and are here to make it easier. Here is the process broken down:

Here is a quick bulleted list of the FHA Condo Approval Process using FHA Review: 

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  • The Management Company or Condominium Board will provide us with a completed questionnaire and HOA documents.

  • We’ll review this information and make sure it meets FHA Condominium Approval Guidelines.

  • If we uncover eligibility issues, we’ll work with the Property Manager to fix them.  This can add time to the FHA Condominium Approval Process depending on the issue. 

  • If it all looks good, we’ll submit to the FHA for a flat fee.

  • The FHA takes about 3-4 weeks to issue the FHA Condominium Approval.

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PREQUALIFY

Property Manager or Board Member will complete our Eligibility Questionnaire.  Our processing team will review the file and see if it meets FHA Condominium Approval Guidelines.

STEP 1

STEP 2

IDENTIFY AND CORRECT ELIGIBILITY ISSUES

If we find zero eligibility issues, we’ll move on to Step 3.

If we discover things in our review that conflict with the FHA Condo Approval Guidelines, we will recommend a course of action to bring the community up to FHA Eligibility Standards.  It will be up to the Property Manager or Board to fix these issues.

SUBMISSION

After the eligibility criteria are met, we will build and submit your application to the FHA for Condominium Approval.  The FHA generally responds to us within 2-3 weeks; however, it may take up to 30 days.

 

At this point, the FHA Condominium Approval process is complete.  Once your community is FHA Condominium Approved, you will be notified and emailed a certificate.

STEP 3

Additional Notes about the FHA Approval Process

If your Condominium meets 100% eligibility and does not get certified for other reasons, we will not charge your Community for the processing. 

Records for FHA Condominium Approval Process

Per our contract, we will obtain your community’s:

  • Recorded Amendments

  • Condominium Plans

  • FEMA Maps

  • Plat Maps

Other companies may expect you to find these documents, or charge extra. The only documents we request from you, the Management Company or the Board of Directors are documents that are not publicly available.

Timeframe for FHA Condo Approval Process

  • The FHA Condominium Approval process can seem lengthy (30-45 days). We prevent delays by identifying potential eligibility issues before submitting the application.

  • Our goal is to find these issues ahead of time and fix them before submitting anything to the FHA.

  • We’ve seen FHA condominium approvals take over 6 months simply because the submitter left out vital information, or submitted it incorrectly.  This can lead to un-funded loans and lost real estate transactions.

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