DON’T SETTLE FOR LESS
BRC will refer you to our associate, an expert third-party who specializes in facilitating the complex VA and FHA condo approval process. His organization is uniquely positioned to liaise directly with the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) to secure VA and FHA approval for condominium communities across the United States.
His extensive experience working with property managers, realtors, lenders, homeowners and boards of directors nationwide has strengthened our reputation for excellence and made our associate the preferred choice for achieving swift and successful approval outcomes.
TOP 10 REASONS YOUR CONDOMINIUM COMMUNITY NEEDS FHA APPROVAL
- Increased Marketability: FHA approval increases the marketability of a condominium project by allowing a larger pool of potential buyers who may qualify for FHA-insured mortgages.
- Higher Sales Prices: With FHA approval, condos may sell for higher prices due to the increased demand from buyers who can only obtain financing through FHA-insured mortgages.
- Competitive Advantage: FHA approval gives a condominium project a competitive advantage over non-approved projects in the same area, as it provides a broader range of financing options to potential buyers.
- Access to FHA Financing: FHA approval allows buyers to access FHA financing with lower down payments, which makes purchasing a condo more affordable for those who may not have a large down payment saved.
- Lower Interest Rates: FHA-insured mortgages typically have lower interest rates than conventional mortgages, making them more affordable for buyers.
- Better Loan Terms: FHA-insured mortgages have more flexible underwriting guidelines and loan terms, making them more accessible to a wider range of borrowers.
- Improved Resale Potential: FHA approval can improve the resale potential of a condominium unit, as it expands the pool of potential buyers who can purchase the property.
- Increased Property Value: FHA approval can increase the overall property value of a condominium project, as it provides a valuable amenity to potential buyers.
- Reduced Risk for Lenders: FHA approval reduces the risk for lenders, as FHA-insured mortgages are backed by the government, providing a safety net in case of default.
- Stronger Financial Position: FHA approval requires condominium projects to meet certain financial requirements, which can help ensure the project is in a strong financial position.
- Reverse Mortgages: FHA Certification is required to obtain a Reverse Mortgage (HECM). Many owners use these loans as a financial planning tool, and without FHA condo approval, they won’t be able to access this type of financing. Don’t let your unit owners miss out on this valuable opportunity.
- Ownership: No more than 50% of units can be investor-owned or used for rentals. (Exception: 35% owner occupancy allowed with specific criteria)
- Commercial Space: No more than 50% of the property can be used for commercial purposes.
- Delinquent Dues: No more than 15% of units can be delinquent in their HOA assessments for over 60 days.
- Single Investor Ownership: For properties with over 20 units, no single investor, entity, or related party may own more than 10% of the units. For properties with 20 units or fewer, no individual owner, entity, or related party may own more than one unit.
- FHA Loan Concentration: No more than 50% concentration of FHA Loans within the community.
- Reserve Funding: At least 10% of all budgeted income must be allocated to a reserve account.