Single Entity Condo Project Approval
The U.S. Department of Housing and Urban Development (HUD) recently made revisions to its handbook in August 2019 in regard to condominium projects. These changes, effective Oct. 15, 2019, open up the potential for more condos to qualify for FHA loans.
Previously, an entire HOA (or development) had to qualify for an FHA loan, whereas now lenders can fund loans based on the subject property unit qualifying on its own. However, each individual unit must go through the approval process; this doesn’t work for multiple units in the same development, at the same time.
In order to be eligible for a Single Entity Condo Project Approval, there are a few additional, important items to note. Such as:
- LTV must be 90% or less
- A Certificate of Occupancy must have been issued at least 1 year ago or has been occupied since
- Project must have a minimum of 5 units
- Cannot be a manufactured home, investment home, or second home
For more information regarding these recent changes, contact a Mortgage Advisor today.Condo, FHA Loans, news