Renovation Financing: And FHA Condo Approvals!
No doubt that the mortgage industry has become more cumbersome over the past few years..The key to smooth sailing is working with seasoned professionals that understand what needs to happen and how to make it happen.
Back in 2003, if a loan officer had a pulse they could get loans closed, today your loan officer needs to have a better understanding of the underwriting requirements.
I have recently been involved in getting a number of loans closed that have required that the Condominium project be FHA approved. Believe it or not, you can use the FHA 203k to purchase or refinance and renovate a condominium. I have seen a number of posts about getting condominiums fha approved and having done a few, it is not as difficult as some loan officers would have you believe.
What you will need to get an existing condo FHA approved:
1. All Condominium legal documents
Recorded Plat Map indicating legal description
- Recorded Covenants, Conditions and Restrictions (CC&R’s)
- Signed and Adopted bylaws
- Articles of incorporation filed with the state
- Recorded Condominium site plans
2. Attorney’s Opinion Letter
3. Plan or evidence of transfer of control of the Association from the developer to the unit owners
4. Proposed or Actual Budget
5. Management Agreement, if applicable
6. FEMA Flood Map
7. Outstanding or Pending Litigation Analysis
8. Pending Special Assessment Analysis
9. Completed Condo Questionnaire
Or Standard questionnaire if the complex consists of 5 or more units.
10. Master insurance policy evidencing sufficient coverage and fidelity bond if applicable