The Importance of Obtaining FHA Approval
In 2009, the FHA ended spot approvals and now requires that the entire association obtain
approval prior to issuance of any FHA loans.
Current FHA guidelines detail the financial and governance requirements condominium
associations must meet before any FHA-backed mortgages will be issued to potential condo
buyers. Having a condominium association approved by the FHA ensures that units can be
marketed to the widest possible array of buyers.
Due to the FHA's expanded role following the housing crash, FHA financing is no longer just
for modest income buyers with limited down payments; it's now available to a broader class
of qualified purchasers. In fact, some lenders are applying FHA condominium association
standards to non-FHA backed loans.
Important facts about FHA loans:
• A growing number of condominium mortgages are FHA-insured
• FHA certification makes communities more marketable and attractive to buyers
• FHA certification indicates that your condominium association is financially solvent
• Maximum FHA loan limits have been increased to as much as $625,500 in some markets,
allowing financing for higher-end units and a broader range of buyers
• Tightening credit requirements will drive more qualified buyers to FHA mortgage products
• FHA-backed loans, unlike other loans, are assumable, allowing the terms of the existing
loan to be transferred to a new owner
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