| Why you should make sure your condo is on the FHA | | | | For Info: |
| approved list | | | | Here are some of the requirements for condominiums |
| If your condominium is in a price range that would | | | | to meet FHA's guidelines: |
| support FHA financing, you ought to contact your | | | | � At least 51% of the total units in the project must |
| Home Owners Association to verify that your | | | | be owner occupied. |
| condominium is indeed on the FHA permitted list. Even | | | | � At least 90% of the total units in the project have |
| if you're not planning on selling or refinancing anytime | | | | been sold. |
| soon, if your condo is not on FHA's list, it can impact | | | | � No single entity owns more than 10% of the total |
| the value of your condo. | | | | units in the project. |
| For More Info: | | | | � The project, including common areas, is complete |
| As of now, the FHA loan limit for the Chicago metro | | | | with no special assessments and no legal actions |
| area for a single unit dwelling is $410,000. If your condo | | | | pending. |
| is valued at this amount or less, it may be attractive to | | | | � The owners association has a reserve plan and a |
| home buyers who are utilizing FHA financing. With | | | | reserve fund, separate from the operating account |
| fewer programs for first time home buyers, FHA | | | | that is adequate to prevent deferred maintenance. |
| insured mortgages are a widely held selection. If your | | | | I recently had a hard working single mom call me who |
| condo is not approved for FHA financing, you could be | | | | needed to reorganize her debts and wanted to use |
| limiting qualified buyers. Fewer home buyers means | | | | her mortgage to do so. Her credit scores were |
| that the condo that's for sale in your complex, may not | | | | ordinary and a few short months ago, I would have |
| sell for as much as it could have. This may translate to | | | | been able to provide her several mortgage options. In |
| lower values for all in your condo complex. | | | | today's market, the only mortgage open for her |
| More Info: | | | | (excluding hard money) was FHA. |
| An additional reason why you ought to make sure | | | | Unfortunately, her condo phase was removed from |
| your condo is on the FHA approved list is because | | | | the accepted list due to the reserve account falling |
| you or one of your neighbors could need to use FHA | | | | below the amount that was considered "adequate". |
| financing to refinance. As a result of our current | | | | We discovered at the instance of the refinance, the |
| mortgage landscape, fewer mortgage programs are | | | | reserve account was back to an acceptable amount. |
| available for people who could not have the highest | | | | The HOA just required to have an audit concluded in |
| credit scores or who need a mortgage with a higher | | | | order to be considered back into FHA's good graces. |
| loan amount. FHA insured mortgages are not as credit | | | | FHA does allow "spot" approvals (until 10/1/2009), |
| score sensitive and will allow up to 85% loan-to-value | | | | however, if your condo has been removed from the |
| for a cash-out refinance at a competitive interest rate. | | | | list, a spot approval is not an option. Apparently the |
| Not having FHA insured mortgages as an option to | | | | cost of the audit was approximately $2,000 and the |
| you and your neighbors who need to refinance may | | | | manager of the HOA was in no rush to |
| have damaging long term results such as a short sale | | | | accommodate my client or us. |
| or foreclosure if they are heading for financial troubles. | | | | Since the Phase her condo is located is not FHA |
| Foreclosed properties also bring down the values of | | | | approved, she cannot proceed with FHA financing |
| neighboring homes. | | | | which would have saved her $450 per month and |
| Go to for info: | | | | would have switched her from an adjustable rate |
| More info: | | | | mortgage to a 30 year fixed FHA insured mortgage. |
| Ask your Home Owners Association if your condo is | | | | It truly is in your best interest and your neighbors, if |
| FHA approved. If your condo has phases; each | | | | your condo is near the FHA loan limits, to make sure |
| specific phase is considered and could or may not be | | | | your condo phase is on the FHA approved list. As the |
| approved. You can also check HUD's site or contact | | | | process may take weeks to complete, I strongly |
| Herb Levin at 773-64-7026 to verify whether or not | | | | encourage you to take action now. Don't let your HOA |
| your condo is on the FHA approved list (FHA's | | | | be lazy...You may need to rally the support of your |
| approved condo location can be confusing and easy | | | | neighbors of your condo phase. It's well worth it to |
| to assume your condo is approved). | | | | protect the value of one of your largest investments. |