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FHA Condo Approval Tips: FHA Recertification, It’s Worth It

FHA financing is becoming an increasingly important option for condominium purchasers looking for an affordable mortgage. FHA mortgages provide competitive interest rates and may require lower down payments than traditional mortgages. This is especially helpful for those seeking to purchase their first home in cities where housing costs continue to increase. FHA approval is a critical component for associations that want to keep their units marketable to the widest range of buyers.  Approval is good for two years and can be renewed after expiration.

Why Keep FHA Approval Current?

Boards often struggle with keeping FHA approval for their association current, especially if there have been no FHA-backed buyers during the two-year approval window. In some cases, boards assume that they can wait until there is a qualified FHA buyer and then can get their FHA status restored in a matter of days. This is a mistaken assumption.

FHA approval and recertification can take up to 30 days once the proper application is submitted, provided that there are no issues in meeting FHA requirements. More importantly, six months after the expiration of FHA approval, the association has to start from scratch and submit an initial application which is much more time consuming and burdensome.

Many boards are still under the impression that FHA mortgages are something that the lender will handle with the potential purchaser. That’s true for the mortgage itself, but a lender cannot issue a mortgage to any potential buyer unless the entire association is approved by FHA. This policy change happened 10 years ago but is still widely misunderstood.

The best way to think about FHA approval is that, for a nominal fee, your association can be marketable to the broadest range of qualified purchasers. Waiting until a unit owner has a buyer wanting to use FHA at the table will likely result in a lost sale and angry resident. Is it worth it?

Why Associa FHA Assist?

FHA backed mortgages are an attractive form of financing, especially for condo buyers. Prior to any purchaser obtaining an FHA mortgage, the entire association must be approved by FHA. Once an application is completed, it can take up to 30 days to get FHA approval for your association. What that means is if your association waits until a unit owner has a buyer wanting to use FHA, the time frame for approval may result in a lost sale. The best way to help ensure your association is marketable to the broadest range of buyers is to get FHA approval. Approvals are good for two years. Natalie,  Associa’s FHA assist lead can help! She can be reached at



About the Author

As senior vice president of external affairs, Andrew oversees Associa’s public affairs, media relations, government affairs and corporate citizenship efforts. Bringing more than 20 years of experience in the public and government affairs arena, Andrew’s focus is working with Associa’s clients, industry colleagues and business partners to ensure a vibrant future for client communities and Associa employees.

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