Since Feb. 1, 2010, condo buyers have not been able to secure approval for FHA-backed mortgages for their condo if an entire building was not certified. Instead, the federal government set criteria to determine the financial viability of an entire building before deeming the project as FHA-approved, even if it had previously been certified. An FHA approval will only lasts two years for a Condominium building.
The number of rejected condo buildings is increasing, due to incomplete or bad paperwork and balance sheets, as an increasing number of condo associations struggle with rentals, short sales and foreclosures. It is jeopardizing the plans of condo sellers who rely on the FHA’s stamp of approval as a marketing tool and condo buyers who either want or need an FHA-approved building.
Since Oct. 1,2011, 38 percent of condominium communities that have gone through the certification process have been rejected by the FHA. The effects of those rejected condos are likely to linger and could hamper the recovery of the housing market.
You can look up a condomium to see if it is FHA approved by checking it against the FHA’swebsite of approved condo buildings.
To see Orlando Condos for sale go to my Orlando realestate condo website.
