A Significant Kentucky FHA First-Time Buyer Opportunity for Condo Lovers!
- 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.
- 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.
FHA Condo Approval Kentucky
The Federal Housing Administration has finally issued a long-awaited update to its condominium rules, announcing Wednesday that it will now allow individual unit approval and is taking other steps to loosen requirements that make these properties eligible for FHA financing. The agency said it expects the updated guidelines to qualify up to 60,000 more condo units a year for financing.
Under the revised guidelines – which take effect Oct. 15, 2019 – an individual condo unit in a building of 10 units or more may be eligible for spot approval if no more than 10% of the units are FHA-insured. For units in buildings with fewer than 10 units, no more than two units can have FHA insurance.
The FHA is also extending the recertification deadline for approved condo projects from two to three years, and it will insure more mixed-use projects, or those with more commercial space, to be eligible, stating that approved projects can now have up to 35% of their square footage dedicated to non-residential use.
The agency also loosened restrictions on owner-occupancy rules, stating that eligible condo projects can now be just 50% owner-occupied.
It also said it will insure up to 50% of units in any given project.
The FHA said it expects the updated guidelines to qualify an estimated 20,000 to 60,000 more condo units per year for financing.
Currently, of the more than 150,000 condo projects across the country, only 6.5% are approved for FHA financing.
This is something the FHA is aiming to change with the updated guidelines, Department of Housing and Urban Development Secretary Ben Carson said on a call with reporters Wednesday.