To obtain FHA-insured financing on a condominium unit, whether for a forward mortgage, reverse mortgage, or re-financing, the condominium association must first be approved by HUD and appear on the FHA listing of approved condominiums and comply with FHA’s extensive regulations. Consequently, FHA’s data shows that as many as 60 percent of associations seeking FHA condominium approval in 2013 were denied.
Recently, a housing program officer with the Department of Housing and Urban Development describes the top reasons properties are being denied, including financial instability and insufficient insurance, with the National Association of Realtors. To view more about this story, please click here:
For more information on FHA financing including pros and cons of FHA approval, eligibility requirements, and the approval process Kaman & Cusimano, LLC service option client board members should read the article “FHA Financing—Is Becoming FHA Approved Right for Your Association” by Attorney Jeffrey E. Kaman available on ATLAS in the “Kaman Reports” Section.