- As a result of Kentucky FHA’s new policy, it is estimated that 20,000 to 60,000 condominium units could become eligible for FHA-insured financing annually.
- Condo projects that are not currently on Kentucky FHA’s list of approved condos may be eligible for an FHA Single Unit Approval.
- Target opportunities include previously approved projects that are now expired or were never approved.
Kentucky FHA Single Unit Condo Eligibility
- At least five units
- 10 or more units, up to 10% may be FHA-Insured
- Less than 10 units, up to two FHA-Insured units
- At least 50% owner-occupancy
- HOA Budget 10% reserve requirement (or amount supported by reserve study)
- Applications must receive an Accept from TOTAL Mortgage Scorecard or have a maximum 90% LTV for an Accept Risk Classification requiring a downgrade to Manual Underwriting.
- Maximum of 35% commercial space
- Maximum 10% individual ownership
- Has a Certificate of Occupancy that was issued at least one year ago or has been occupied
- Manufactured homes, gut rehab or new construction is not eligible
- No more than 15% of units are 60 days delinquent
- Not located in an approved condominium project or unapproved phase of a condominium project with an approved Legal Phase in HOA dues
This is not a commitment to make a loan. Loans are subject to borrower qualifications, including income, property evaluation, sufficient equity in the home to meet LTV requirements for refinances, and final credit approval. Approvals are subject to underwriting guidelines, interest rates, and program guidelines, and are subject to change without notice based on applicant’s eligibility and market conditions. Joel Lobb and his employer, American Mortgage Solutions is not acting on behalf of or at the direction of HUD/FHA or the Federal Government. Equal Opportunity Lender and Equal Housing Lender.