Ebooks

Frequently Asked Questions About FHA Approval 1. What is FHA condo approval? FHA condo approval refers to the process by which the FHA certifies a condominium association as qualified for FHA- backed mortgages. The FHA will not issue any mortgage to a potential buyer of a unit unless the entire condominium association is approved. As the process for preparing and submitting the application can take a few months, waiting until a unit owner has an FHA-qualified buyer means that sale is likely to fall through. 2. Is my condo association required to get FHA approval? Most professionals don't believe that an association has a legal obligation to obtain FHA approval, especially if they don't meet the key criteria. That said, having FHA approval means that any potential buyer can qualify for FHA financing. If a sale is pending, the processing time for FHA approval will likely mean lost sales for your residents. So while it is not required, it is generally a good idea to ensure that units are marketable to the broadest range of buyers. 3. How long is the certification and/or the recertification process? Initial processing time: It generally takes up to 30 calendar days from the receipt date of the package by the FHA, depending on volume of project approval submissions. Reconsideration processing time: It generally takes up to 30 calendar days from the receipt date of the reconsideration package, but can be as quick as 14 days. 4. How long is FHA approval valid? FHA approval is valid for two years. 5. How can I find out if my association is FHA approved? The FHA maintains a website where you can check to see if your condominium association has FHA approval. Follow this link to find out of your association has FHA approval: https://entp.hud.gov/idapp/html/condlook.cfm. 6. If I live in an HOA, does my association need FHA approval? No; the current FHA approval process applies only to condominium properties. 7. How can my condominium association obtain FHA approval? We recommend working with a dedicated FHA project approval partner to make the FHA approval process seamless for your condominium association. Associa has an FHA Assist program that is designed specifically to handle FHA approvals. Our Associa FHA Assist team has experience working on FHA applications, and can work with associations to overcome common obstacles to obtaining FHA certification. 8. Is it better to wait until a resident has an FHA buyer to get approval? No. While the approval process is not overly complicated, it is highly technical. Once the numerous documents needed are assembled, the FHA can take up to 30 days to approve. Even in the best case scenario, the time between application submission and application approval can frustrate even the most committed purchasers. 9. How much does Associa's FHA Assist program cost? Associa FHA Assist charges $1,000 for condo approval services. This cost is split into two payments: a $350 non- refundable payment due upon contract signing and the remaining $650, which is due upon FHA approval. If the FHA rejects the application and you are not approved, Associa waives the final payment. 8

• Cover