Back in November we told/warned you how FHA buyers were being blocked from buying a lot of condos. (FHA had de-certified every condo in the country, and required them all to reapply if they wanted prospective buyers to be eligible for FHA funding. But many condo board didn’t do this, as sellers were rather surprised to learn. Read that story here.)
Annnnnyway, now, reports Ken Harney in the Washington Post, FHA is looking at changing its rules for recertification, which will (hopefully) make it easier for condo associations to file the paperwork and get recertified.
What kind of hard-to-meet criteria did FHA have?
- At least half the units had to be owner-occupied.
- At least 85% of owners had to be current with their condo association fees.
- At least 75% of the total floor space must be residential. (That’s a problem in urban areas, where lower floors often have stores and offices.)
Oh, and if there are inaccuracies in the paperwork, the condo board members could face up to 30 years in prison. Would you want to sign a document under those circumstances?
FHA hasn’t said exactly what changes it will make, but it’s expected to make some change in the next few days. You can bet we’ll keep you updated.