At FHAforYou we offer Federal Housing Administration (FHA) condo approval consulting and submission services to Homeowner Associations, Management Companies, Developers/Builders, Real Estate Professionals and homeowners nationally. We focus on providing professional and timely, responsive service to build a long-term relationship with each client. Our number one priority and commitment is to obtain FHA condo approval for your community.
We can also assist with your department of Veterans Affairs (VA) or Fannie Mae approval.
WHY IS FHA APPROVAL BENEFICIAL?
1. Lower Down Payment FHA offers the lowest down payment available at 3.5%.
2. Easier Credit Qualifications Credit requirements (FICO scores) are not as strict as conventional loans.
3. Marketability Approval sets your community apart from others in your area. Statistics show that 60% of new buyers intend to receive FHA financing. Also, some real estate professionals only show units that are FHA approved.
4. Increased Home Value FHA approved condominiums have a larger pool of prospective buyers and increases competition and demand. This may result in higher purchase prices and an increase in the market value. This can also increase the value of the units within the approved community. 5. FHA loans are Assumable The seller of a property that currently has an FHA-insured mortgage can offer the financing and terms to the buyer. Assumability is a huge benefit to a future seller when interest rates turn higher. This will allow the sales price to be higher because of the attractive financing and the group of qualified buyers will be larger due to the lower monthly payment that comes with a lower interest rate. 6. 203K Loan This program lends money to purchase a property and rehabilitate it without payments due for 6 months. This loan program is the only one of its type. 7. Streamline Refinance FHA-insured mortgages have a refinance option that requires no appraisal. This option has allowed many homeowners to reduce their monthly payments even when their property was worth less than what was owed, a benefit that is not possible with any other type of mortgage.
8. Awareness Going through the FHA condo approval process shows your Homeowners that you as a Board care about the community and wants it to thrive. Several HOA attorneys advise that it is the fiduciary duty of the condo Board to apply for FHA condo approval to maintain or increase property values for residents. By avoiding the approval process it will hamper your owners when they go to sell their units.
9. Energy Efficient Mortgage (EEM)
The EEM allows an FHA purchaser to borrow up to $8,000 to make a property more energy efficient. The loan proceeds can be used to purchase energy-efficient appliances, fixtures, insulation, weather stripping, and solar enhancements.
10. HUD Assignment
An FHA borrower unable to continue making their payments can petition for HUD assignment. If the default is due to circumstances beyond the borrower’s control and it’s possible to return the loan to performing status within a three-year period, HUD will defer foreclosure and take assignment of the mortgage. As part of the assignment, HUD can temporarily reduce or forgo mortgage payments.
11. Anti-Flip Rule Eliminated
The FHA anti-flip rule (prohibited FHA from insuring a mortgage on a home where the seller owned the property for less than ninety days) has been eliminated. FANNIE MAE and FREDDIE MAC require a 6 month waiting period for a buyer purchasing from an investor.