By now, most people are aware of the condominium certification requirements imposed by the FHA. In short, if a condominium community is not FHA certified, purchasers cannot utilize FHA financing to purchase a unit in such community. What does that mean in reality? It means many first-time home buyers are unable to purchase condominium units in certain condominium communities.
In order to get certified, condominium communities have to jump through a lot of hoops and comply with many requirements imposed by the FHA. As a result, many condominium communities are unable to obtain certification and the pool of purchasers in such communities significantly shrinks.
However, in a recent speech by Housing and Urban Development Secretary, Julian Castro, a message was sent that things may soon change. According to HUD, FHA condominium rules have been revised and await approval from the Obama administration. According to Castro, the proposed changes would simplify the FHA certification process and relax many of the controversial requirements of certification.
We’ll keep you updated of changes that come about, but let us know your thoughts about the current certification requirements and whether you believe it’s time for a change.