 Major HUD Changes
You may be aware that last year HUD made some major changes to their condo FHA approval process and requirements. Without knowing what needs to be done your certification could have lapsed. Without your condominium community on the HUD approved list you could be missing out on a lot of potential homebuyers for your area.
The HUD changes affect everyone from current homeowners, potential buyers and the condominium communities.
- What are the changes?
- How do the changes affect everyone
- What is an FHA loan?
Changes to the HUD Program
The biggest loss to the HUD program is no more spot approvals. Spot approvals were approved on an as needed basis without the condominium community needing full HUD approval. This is a huge deal to condominium communities that weren’t HUD certified. Now if you want to appeal to the large pool of buyers your community must be HUD approved in order for those that will qualify for condo FHA approval financing.
In 2010 HUD required a mandatory recertification for the program. If you let your certification laps or didn’t certify we can help you. Without being HUD certified you could be damaging your condominium community. With our experience working directly with HUD and helping condo communities getting HUD approved we can help you. We offer more than 30 combined years of experience to our clients.
Also, you must now recertify every two years. There is a lot more involved when you let your certification lapse so trust us, you don’t want that to happen. There can be a long wait time before your condo FHA approval certification will go through. Don’t wait any longer to get started on recertifying or certifying.
Affects Felt By Everyone
You can see that these are huge and drastic changes to the program that will affect everyone. Without HUD approval you could see the market value drop around you. This affects current homeowners, which affects the entire community. This program is helpful to so many people that wouldn’t otherwise have the opportunity to own a home. Being HUD approved not only helps your condo community but it also allows more choices for those people that qualify for condo FHA approval financial assistance programs.
FHA Loans
Calling the programs ‘FHA loans’ is a bit deceiving. The FHA (Federal Housing Administration) doesn’t actually loan any money. They make it possible for lenders to approve loans to people and projects that otherwise wouldn’t qualify under normal underwriting circumstances.
The program was started during the 1930’s to increase the amount of lending and increase those that could purchase homes. Some of these people simply don’t have enough credit or fall into low or medium income class. These condo FHA approval programs allow everyone with the drive to purchase a home.
As well as helping approving more people for loans there are other benefits to the program. Potential homeowners can enjoy such perks as down payment assistance and help with closing costs.
Applicants can qualify for a small down payment as little as 3.5% of the purchase price. Think of how many people can benefit from that. Many people have the means to afford a monthly home payment but not the ability to put down a 20%, or larger, down payment. This opens the door for so many more people to be able to afford a home.
Down payment assistance is available up to 6% towards closing costs. This helps keep the loan affordable. Consider all the benefits this program offers to so many people.
Isn’t part of the American dream being able to own your own home? Even though the changes to the program are drastic and can negatively impact condo communities there is a greater purpose and it is helpful to a lot of people and can be helpful to condo communities with so many condo FHA approval options.
There is no reason to delay in getting certified for these FHA programs. The benefits will be greatly appreciated by everyone in your community. It’s responsible to do everything you can to protect the livelihood of your condo community. Become a part of this great program today. |
