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If a property (condo) is not currently FHA approved, is there a process to get it approved?

I recently made an offer on a condo and it was accepted, I was under the impression it was an FHA property and banks even gave me FHA pre-approvals but it turns out it is not (even though when reviewing the condo docs they have FHA reserves). Is there anyway this property can approved for FHA now and be purchased with a FHA loan?
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December 21 2009 - Braintree
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If you need more info on FHA approval please call me at 732-494-2211. Thanks 
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November 15 2013
Most of the time if a condo isn't FHA approved, they must reach out to all the tenants and ask if they agree (usuallly) to pay a lttle extra in fees to get the FHA approval. They must wait for the consensus to get back and if everyone in the condo assosiation agrees then they will start to get the condo approved if not then they won't. It does take a process but if its worth it to you then maybe you should look into it.
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November 15 2013
Getting a condo or planned development approved with FHA can be time consuming. And if you have the time it can be worth it. But if you are attempting to purchase a property not FHA approved I suggest you consider conventional financing instead. Some lenders and banks like us offer conventional financing up to 95% of the properties appraised value. And in some cases all the way up to 97%. That is .5% higher than what FHA offers.What this means for you is that there is no longer a need for the condo complex or planned development to be approved with FHA or HUD. It also means lower mortgage insurance rates. And possibly no mortgage insurance at all depending on your qualifications. There are a number of other benefits to going conventional over FHA, those are just a few. Please contact me if you have questions about the programs or how this works. I am more than happy to discuss all the details with you and see if you and your property will qualify.
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November 14 2013
As ReverseMortgageUSA mentioned, you can still do spot check approvals through February 1st, which means you can do a FHA loan on non-approved condos IF the property meets spot check requirements. 

Please take some time to think about whether you want to buy a non-warranted condo from a larger perspective.  I wrote a blog specifically about this on Zillow.

http://www.zillow.com/blog/mortgage/2009/07/21/new-fha-guidelines-could-change-the-condo-market-forever/

Now, before that blog scares you to death, know that HUD has released new guidelines that will make it easier for condos to get a full FHA warranty between December 7th of this year until the end of next year.  If you do buy, a spot check is a quick solution but I would highly recommend you get the entire project approved.

The deadline, as ReverseMortgageUSA mentioned, is February 1st of 2010 for a spot check.  That does not mean you have to CLOSE by then.  The FHA case # has to be issued by then, which can be done now.  This is typically done early in a closing process of a FHA loan.  If you want to close sooner and save the value of the entire condo community, I would do a spot check closing AND get the project approved through the help of the HOA. Show the agents and the HOA the blog I posted above.  My hopes are that more communities realize the value of a FHA warranty and do not let the deadline slip them by and affect the values of their community.
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December 22 2009
FHA accepts spot condo's till Feb of this year. After Feb the rules for condo's will change. You still have time however, doing a spot condo does not gaurentee your condo will be fha approved.
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December 22 2009
Yes. Use a lender that does spot approvals for FHA. As long as it fits guidelines you should be able to get it financed.
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December 21 2009
 
Related Questions
If a property (condo) is not currently FHA approved, is there a process to get it approved?
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Latest answer by Shashi Aggarwal
November 15 2013 | 6 answers
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