Is That Condo/Townhome FHA Approved?

One of the biggest hurdles I face with showing prospective buyers homes in the Charlotte, NC. area is when they are looking at town homes or condo is if it is FHA approved. Just because the place looks like it is ready to move in and passes the eye exam on being an FHA approved place does not mean it is FHA approved. Condos/townhomes are under different requirements for FHA approval than single family homes. The Federal Housing Administration has guidelines in place that protect both the buyer and them on condo/townhome purchases. The problem is most Realtors do not know this or do not do the work to see fi the place will qualify for FHA or not. Thus the problem arises: You go and look at the unit and your buyer likes it and makes an offer and you get the offer negotiated. You have asked the questions and they tell you it qualifies. You then proceed to the appraisal and the loan application process and find out through the mortgage lender that the house is not FHA eligible. It did not meet one of these guidelines. Now I agree it is impossible to know every single regulation. But if I am representing a seller I am going to make sure that the unit is either FHA eligible or not. I showed homes the other day where some units said they were eligible for FHA and others said they were not. Who was right and who is wrong? Who did their homework and who did not? Some basic guidelines I use before I go out and show one that I will ask the listing agent to verify with the HOA management company are what percentage is owner occupied? FHA requires that at least 50% be owner occupied to qualify. What percentage is delinquent on their dues for more than 60 days? New this year is that it cannot be greater than 15%. Is the complex done and complete? It must be 100% to qualify. There are many other little guidelines. But if you can by these three questions you have a very good chance that the condo or townhome is FHA eligible. These are questions you should be asking the listing agent and ones that they should be able to answer..... Dave diCecco Realtor/Broker Coldwell Banker United Cell:704-519-7895 ddicecco@cbunited.com www.davedicecco.com