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FHA Changing Approval Process of Existing Condo Projects

The following are some of the changes the FHA is making in how they process and accept loans in new and existing condo projects:

  • The burden of approving a condominium project will shift from the FHA to the lenders
  • Approved condo projects will need to be re-certified every 2 years
  • Homeowner’s Associations will need to fill out an FHA Homeowner’s Association Certification verifying that delinquencies are less than 15%
  • 50% owner occupancy ratio will be required on existing approved condos