HUD Has Made Changes to Their Program

Sometimes qualifying for a conventional loan isn’t possible for many first time homebuyers.  The FHA offers a program making it possible for people to get affordable financing.  Through HUD and FHA more and more people can become home buyers and the condo approval process is simplified.
However HUD has made drastic changes to the condo approval process program endangering the availability of these programs.  These changes make it very important for every condominium community to get FHA certified or recertified as soon as they can.

We have worked directly with HUD on numerous concerns to deliver FHA loans to our clients.  We can help you with the certification process.  Who are we?  We are the Condo Approval Group.  We have a combined 30 years of experience writing FHA loans, we understand the condo approval process both inside and out. 

It’s important that your condo community is HUD approved to offer FHA loans.  The group of potential home buyers that qualify for these types of loans is large, so be sure your condo approval process is up to date and offers potential buyers the options they need. 

Some of the changes that were made were; elimination of spot approvals, mandatory recertification, and recertification every two years.  Eliminating spot approvals can be the cause of major concern and problems for your condominium community.  Those homebuyers using FHA assistance programs they will no longer be able to purchase a home within your community because your community won’t be eligible for those types of loans. 

Full FHA approval is now required for anyone wanting to appeal to the masses of people who only qualify for these types of loans.  Spot approvals were made on an as needed basis allowing communities to stay un-certified.  That has all changed.  It is necessary to become HUD certified in order to allow FHA loans. 
Now is the time to recertify or get certified.  It can’t be anticipated on how long it will take, so get started now to avoid any problems with your condo approval process.  If you wait you may have your certification lapse.  That is something you want to avoid.  You don’t have to worry about the condo approval process; we can take care of everything from start to finish. 

Becoming or staying certified can help your community hold its current market value.  It is imperative that you get HUD approved to offer FHA loans.  Keep in mind that you must now recertify every 2 years. 

Benefits of the FHA loan for buyers include; allowing a low down payment, help with closing costs, and few co-signer requirements.  It allows for as little as 3.5% of the purchase price as a down payment.  This opens many doors for people that wouldn’t otherwise be able to come up with a higher down payment.
It is also possible to receive up to 6% towards closing costs.  This further reduces the loan amount.  Anything that can be done to make loans more affordable is a good thing to those with a lower income. 

Another advantage this program gives to applicants is low co-signer requirements.  This program doesn’t require co-signers to live in the home, as long as the co-signer is a blood relative.  This only increases the number of people becoming new homeowners, with such an easy condo approval process. 
The FHA loan program was started in 1930 and is open to certain people as well as certain properties that have to meet minimum standards.  The FHA doesn’t loan out any money, instead it ensure loans made by other lenders.  This encourages the lenders to approve people that wouldn’t normally get financing and also allows more people to qualify for financing. 

Condominiums used to just get spot approvals instead of becoming fully certified.  Because that is a thing of the past it is necessary to become fully certified.  Currently your project is either HUD approved or it isn’t.  There is no middle ground, requiring anyone that wants their project to be approved to become fully certified. 

The sooner you become HUD approved the sooner buyers can obtain financing for your community.  It can take a long time to get recertified, so do not delay.  You want to be sure that your certification isn’t going to expire soon.  If you aren’t certified, what are you waiting for?  Get certified today.