Condominiums should receive their FHA condo certifications in order to The FHA insures loans made by FHA-approved lenders all across the country. In fact, 30% of all mortgages in the United States are insured by the FHA. The availability of this insurance enables lenders to make loans and extend credit to a broader class of borrower, allowing owners within a common interest community to market their homes to more potential buyers. The FHA will only insure loans that meet their requirements. As of February 1, 2010, the FHA may only insure loans in condominiums that have been certified by the FHA. These new rules do not relate to homeowners associations. Condominiums that are currently certified must be recertified every two (2) years. The new FHA rules are applied nationwide.
FHA condo certification will likely make the sale and purchase of homes within a condominium easier. Owners can make the argument that condominiums have a fiduciary duty to seek FHA certification. Once a condominium’s approved status is published, the FHA will be free to insure loans there. Stark & Stark’s Community Associations Group is ready to discuss the relevant issues associated with securing an FHA condo certification, and can prepare and file the applications.